Jappelli, Tullio; Padula, Mario; Pistaferri, Luigi - University of Salerno / Centre for Studies in Economics … - 2005
Recent models with liquidity constraints and impatience emphasize that consumers use savings to buffer incomefluctuations. When wealth is below an optimal target, consumers try to increase their buffer stock of wealth bysaving more, while, if wealth is above target, they increase consumption....