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Börsch-Supan, Axel H. - 2016

When the challenges of population aging are being debated, the uncertain future of pension systems is a topic of high priority and large controversy. The aim of this chapter is not to provide a “consensus view” on social security and public insurance in aging populations but to put structure...

Persistent link: https://www.econbiz.de/10012981855

Unemployment Risk, Precautionary Saving, and Durable Goods Purchase Decisions

Dunn, Wendy E. - 1999

of consumers' durable goods purchase decisions. A theoretical model is presented in which both income uncertainty and …

Persistent link: https://www.econbiz.de/10014202887

Precautionary Saving and Income Uncertainty in Germany - New Evidence from Microdata

Bartzsch, Nikolaus - 2008

could be due to precautionary saving. In this paper, the importance of precautionary saving against income uncertainty is … alternative measures of income uncertainty in a cross-section of households. In addition to the usual controls, risk aversion is … about 20%. Compared with net financial wealth, housing wealth is not used as a buffer stock against income uncertainty …

Persistent link: https://www.econbiz.de/10014220111

Heterogeneous Life-Cycle Profiles, Income Risk and Consumption Inequality

Primiceri, Giorgio E.; van Rens, Thijs - 2007

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...

Persistent link: https://www.econbiz.de/10014225377

Risk Aversion and the Elasticity of Marginal Utility with Respect to Consumption

Hanna, Sherman D.; Gutter, Michael; Fisher, Patti J. - 2015

Hypothetical questions were used with 252 students at two universities to elicit values of relative risk aversion and of the elasticity of marginal utility with respect to consumption. Conceptually, the magnitude of these two utility function parameters are plausibly similar, but there was not a...

Persistent link: https://www.econbiz.de/10014134870

Precautionary Saving and Health Risk : Evidence from Italian Households Using a Time Series of Cross Sections

Atella, Vincenzo; Rosati, Furio C.; Rossi, Maria Christina - 2005

two contemporaneous sources of uncertainty, income and health expenditures, to explain the presence of precautionary … share of their out-of-the-pocket medical expenditures. We therefore expect consumers to react to this uncertainty by … to health uncertainty …

Persistent link: https://www.econbiz.de/10014061178

Optimal Consumption and Investment with Labor Income Uncertainty and Endogenous Retirement

Woolley, Matthew M. - 2004

This paper characterizes optimal consumption and investment policies for investors with asset return predictability, stochastic labor income and endogenously-determined retirement. We find that the ratio of total wealth-to-labor income (normalized wealth) is the primary determinant of the...

Persistent link: https://www.econbiz.de/10014069598

Income Uncertainty, Precautionary Saving, and Social Insurance

Joyce, Matthew; Singh, Aarti - 2022

Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the income distribution, we find that low-income households have the highest fraction of their wealth accumulation explained by precautionary motives. These results for Australia...

Persistent link: https://www.econbiz.de/10014030151

Income Uncertainty, Consumer Durables Investments, and Home Production : Evidence from China

Wang, Yabin; Xue, Yuhan - 2019

We investigate the effect of uncertainty on home durable purchase decisions, and empirically evaluate the efficacy of … consumer durable policies under uncertainty. A model of lumpy home capital adjustment shows that elevated uncertainty leads … from China where both uncertainty and home production are substantial. We exploit a wide‐scale rebate program funded by the …

Persistent link: https://www.econbiz.de/10014107930

Precautionary Savings and Self-Selection - Evidence from the German Reunification 'Experiment'

Fuchs-Schündeln, Nicola; Schundeln, Matthias - 2005

We combine particular features of the German civil service with the unique event of German reunification to test the 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...

Persistent link: https://www.econbiz.de/10014065470