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We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store-or-sow" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a "volatility trap." Namely, big savers...
Persistent link: https://www.econbiz.de/10013102269
We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a ""volatility trap."" Namely, big savers...
Persistent link: https://www.econbiz.de/10014396572
Persistent link: https://www.econbiz.de/10015076695
below-ground wealth, complemented by additional precautionary savings at initial times to build up a small liquidity fund to …
Persistent link: https://www.econbiz.de/10011541123
Persistent link: https://www.econbiz.de/10012502497
We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a ""volatility trap."" Namely, big savers...
Persistent link: https://www.econbiz.de/10009615558
In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy …
Persistent link: https://www.econbiz.de/10013123991
In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy …
Persistent link: https://www.econbiz.de/10014399356
increases households' precautionary savings. In the model, the combination of income risk and the precautionary savings motive …
Persistent link: https://www.econbiz.de/10010487744
Persistent link: https://www.econbiz.de/10011346812