The empirical literature on household savings tends to treat savings simply as the residual of income minus consumption … smoothing consumption is also confirmed by the use of a system of equations in which both portfolio and production decisions are … buffering consumption. As an extension, we have explored the monthly ICRISAT panel data for the period 2009-2012 in the same …

Economists have studied for a long time how decision-makers allocate scarce resources. The recent literature on … rational inattention studies how decision-makers allocate the scarce resource attention. The idea is that decision-makers have … the optimal allocation of attention by decision-makers can explain important features of economic data. …

of in cash can play a major role in encouraging savings. When paid on the account, the money is saved by default, while … in other assets, but increase their expenditures on regular consumption items. We exclude two alternative mechanisms that … empathy towards the banker. Second, we provide evidence against the treated having developed an active savings habit on the …