Jappelli, Tullio; Padula, Mario; Pistaferri, Luigi - C.E.P.R. Discussion Papers - 2007
fluctuations. When wealth is below an optimal target, consumers try to increase their buffer stock of wealth by saving more. When … it is above target, they increase consumption. This important implication of the buffer stock model of saving has not … population groups that are more likely, a priori, to display such behaviour. The saving behaviour of young households is instead …