significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income …. -- Consumption-savings decision ; interest rate elasticity of savings ; income uncertainty …This paper empirically investigates the effects of changes in the interest rate as well as transitory income …

theory of precautionary savings and to quantify the importance of self-selection into occupations due to differences in risk … aversion. In the presence of self-selection, failing to control for risk aversion in empirical tests of precautionary savings … results in a bias that could lead to a false rejection of the theory. We exploit the fact that for individuals from the former …

significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income …This paper empirically investigates the effects of changes in the interest rate as well as transitory income … uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the …

alternative measures of income uncertainty in a cross-section of households. In addition to the usual controls, risk aversion is …The saving ratio of households in Germany has increased in the past few years when the income trend was weak. This … could be due to precautionary saving. In this paper, the importance of precautionary saving against income uncertainty is …

This paper investigates whether risk preferences explain how individuals are sorted into occupations with different … willingness to take risks whose behavioral relevance has been validated in previous work. As a measure of earnings risk, we use … relating earnings risk to the measure of individual risk preference, our evidence shows that individuals with low willingness …

endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers …, which mitigates their precautionary savings motive and aggregate demand falls by less. Using a quantitative model analysis …

risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this … recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using …