In this paper household level data are used to explore whether unemployment risk is an important factor in the timing … cycle. The model predicts that consumers respond to increases in unemployment risk by postponing purchases of the durable …. Consistent with the model, there is evidence that unemployment risk has a direct effect on the timing of home purchases …

Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the … related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …

Precautionary savings occurs in response to uncertainty regarding future income. The precautionary motive to delay …

This paper extends the idea of using ex-ante risk measures in a model of precautionary savings by explicitly simulating … specific effects. I find evidence for precautionary savings in response to the uncertainty measures. The results are robust and …

This paper extends the idea of using ex-ante risk measures in a model of precautionary savings by explicitly simulating … specific effects. I find evidence for precautionary savings in response to the uncertainty measures. The results are robust and …

increased savings help resolve the so-called risk-free rate puzzle. By proposing a novel utility function that features first …-order. In that case, the presence of a small, positive-mean risk to future wealth reduces saving, while first-order prudence can …-order prudence, we show that the risk-free rate puzzle can be resolved even within the EU paradigm. …

labor, and a representation of preferences that disentangles attitudes towards risk, attitudes towards intertemporal …

We study how risk aversion affects precautionary savings when considering monotone recursive Kreps-Porteus preferences …. In a general infinite-horizon setting, we prove that risk aversion unambiguously increases precautionary savings. The …