related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …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 …

theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …, experimentally elicited loss aversion and precautionary savings. We do so using a sample of 640 individuals from the low-income …

significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income …. -- Consumption-savings decision ; interest rate elasticity of savings ; income uncertainty …This paper empirically investigates the effects of changes in the interest rate as well as transitory income …

significant effects of precautionary savings on the consumption-savings decision. As a result of a doubling of transitory income …This paper empirically investigates the effects of changes in the interest rate as well as transitory income … uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the …

alternative measures of income uncertainty in a cross-section of households. In addition to the usual controls, risk aversion is …The saving ratio of households in Germany has increased in the past few years when the income trend was weak. This … could be due to precautionary saving. In this paper, the importance of precautionary saving against income uncertainty is …

precautionary saving behavior of Japanese households. Our findings are: 1. Measures for income uncertainty have a positive influence … on the target for precautionary wealth but not on precautionary wealth. 2. The positive influence of income uncertainty … suggest that Japanese households save against income uncertainty until around when their head is aged 50 and then save against …

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 to control for risk aversion in empirical tests of precautionary savings … results in a bias that could lead to a false rejection of the theory. We exploit the fact that for individuals from the former …

We investigate whether US households possess advance information about their future income and what this means for … requires only panel data on consumption and income. Using the Panel Study of Income Dynamics, we find-in contrast to the … incomplete markets model and find that advance information reduces households' income forecast errors by 15%. Our estimation …