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This paper concerns pitfalls associated with the use of approximations to dynamic Euler equations. Two applications of the approximations are notable. First, tests for precautionary saving motives typically involve regressing consumption growth on uncertainty in expected consumption growth. The...
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This paper investigates why high income households in the United States save on average more than low income households …
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families changed notably in the three-year period. While income continued a moderate upward trend, net worth grew strongly, and … with 1995, debt repayments in 1998 accounted for a larger share of the income of the typical family with debt, and the …
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"excess sensitivity" of consumption with respect to income changes. Some of my findings sharply contradict the conventional …
Persistent link: https://www.econbiz.de/10004973899
We consider an environment in which individuals receive income shocks that are unobservable to others and can privately …
Persistent link: https://www.econbiz.de/10005498574