We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store …-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

. These results are robust to controlling for other determinants of saving rates, including wealth-to-income ratios, the …Heightened uncertainty since the onset of the Great Recession has materially increased saving rates, contributing to … least two-fifths of the sharp increase in household saving rates between 2007 and 2009 can be attributed to the …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store …-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

This paper examines the role increasing personal wealth and home equity withdrawal (HEW) have had in the decline in the … personal saving rate in the United States. It does so by comparing the U.S. experience with those of Australia, Canada, and the … while making housing wealth more liquid as HEW becomes easier over time. Regression analysis indicates the expected negative …