Partial equilibrium models suggest that when uncertainty increases, agents increase savings and at the same time reduce … in the shock process induces precautionary savings rather than irreversibility effects. If shocks are idiosyncratic and …

, during which time expected earnings are zero. We find that income uncertainty can alter savings patterns over the lifecycle …Several models of economic behavior currently compete for an explanation of individual wealth accumulation and savings … patterns. In this paper we focus in particular upon the role of income uncertainty, and the role played by a retirement period …

risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this … recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using …

data. How these differences affect saving in theoretical models depends on the metric one uses for risk. For labor-income …How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the … risk, second-degree increases in risk require prudence to induce increased saving demand. However, prudence is not …