Hahm, Joon-Ho; Steigerwald, Douglas G. - In: The Review of Economics and Statistics 81 (1999) 1, pp. 32-40
We study the effect of income uncertainty on consumption in a model that includes precautionary saving. In contrast to previous studies, we focus on time-series variation in income uncertainty. Our time-series measure of income uncertainty is constructed from a panel of forecasts. We find...