Cash holdings as a proportion of total assets of U.S corporations have roughly doubled between 1971 and 2006. Prior research attributes the large cash increase to a rise in firms' idiosyncratic risk. We investigate two mechanisms by which increased idiosyncratic risk can lead to higher cash...

Cash holdings as a proportion of total assets of North American corporations have roughly doubled between 1971 and 2006. Prior research attributes the large cash increase to a rise in firms' cash flow volatility. We investigate two mechanisms by which increased volatility can lead to higher cash...

This study focuses on dynamic asset pricing implications for consumption and portfolio shares. First, we exploit the investors' intertemporal budget constraint and the induced national saving identity to construct US total wealth. We then document the empirical shares using aggregate consumption...

Grâce aux récents développements des méthodes d'approximation numérique, des progrès marquants ont été réalisés pour comprendre et vérifier le comportement d'épargne de précaution. Cet article passe en revue les déterminants de l'épargne de précaution, l'effet des politiques...