Browning, Martin; Ejrnæs, Mette - Centre for Applied Microeconometrics (CAM), Økonomisk … - 2002
Several recent papers have concluded that precautionary saving motives are needed to reconcile data on lifetime … patterns of consumption and income with a standard optimising model. In this paper we contest that we necessarily need a … precautionary motive and we show that if we take consumption to take proper account of the number and ages of children, then …