This paper considers the intertemporal consumption/savings decision when income follows a random walk with drift and … precautionary savings and hence to accumulate more wealth than otherwise. In a calibration exercise it is shown that for a plausible …

and savings decisions of singles and married couples. Partial insurance against wage and employment shocks is provided by … social programs, savings and the labor supplies of all adult household members. The optimal policy mix focuses mainly on …

. This study adds to the discussion by providing causal estimates for the effect of transfer receipt on the savings behavior … of households. The model allows for dynamic adjustment and variations in the savings behavior over the wealth … transfer volume, the transfer incidence over the wealth distribution and the effect of the savings behavior. The results are …

higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … and a precautionary savings motive will lead to procyclical capital out ows at business cycle frequency and a higher long …