This paper examines the demand for major financial assets by householders during different stages of their lives using the life-cycle theory of consumption and saving and cross-sectional data from the Survey of Income and Program Participation (SIPP). Unlike most studies on money demand, data...

This study examines the empirical contents of precautionary demand for transactions money balances. Panel data are utilized to construct estimates of income variance. Regression results indicate that income uncertainty has a positive effect on precautionary money demand, but the magnitude of the...