-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …

incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in … savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using …

lower consumption and GDP growth. Consistent with a model of precautionary savings in the face of uncertainty, we find for a … panel of advanced economies that greater labor income uncertainty is significantly associated with higher household savings …. These results are robust to controlling for other determinants of saving rates, including wealth-to-income ratios, the …

-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

Exporters of exhaustible resources have historically exhibited higher income volatility than other economies …, suggesting a heightened role for precautionary savings. This paper uses a parameterized small open economy model to quantify the … role of precautionary savings in economies with exhaustible resources, when the only source of uncertainty is the price of …