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Risk and Saving in Two-Person Households : More Scope for Precautionary Saving

Apps, Patricia F. - 2012

The existing literature suggests that when the saving decision of two-earner households under risk is analysed, standard results on the existence of precautionary saving no longer apply: precautionary saving is obtained if and only if very stringent conditions hold. This paper shows that when...

Persistent link: https://www.econbiz.de/10013099761

Fixed Amount Saving and the Permanent Income Hypothesis

Vosen, Simeon - 2012

flexibly adjusting savings to income variations as assumed by the Permanent Income Hypothesis (PIH). Fixed amount saving …

Persistent link: https://www.econbiz.de/10013100891

Determinants of Precautionary Savings : Elasticity of Intertemporal Substitution vs. Risk Aversion

Oduncu, Arif - 2013

aversion on savings separately and determine which coefficient is more important factor for precautionary savings. This is an … important question since a significant fraction of the capital accumulation is due to precautionary savings according to … literature. Thus, knowing the important determinant of precautionary savings will be helpful to understand the capital …

Persistent link: https://www.econbiz.de/10013087070

Saving and Consumption in Cities

Frame, David - 2013

This paper examines urban residential location and rent determination within a city populated by consumers acting with perfect foresight. In this setting, the consumption and saving decisions of city residents are determined jointly with their choice of location, thereby offering an initial step...

Persistent link: https://www.econbiz.de/10013092359

A Life-Cycle Model with Ambiguous Survival Beliefs

Groneck, Max - 2013

On average, "young" people underestimate whereas "old" people overestimate their chances to survive into the future. We adopt a Bayesian learning model of ambiguous survival beliefs which replicates these patterns. The model is embedded within a non-expected utility model of life-cycle...

Persistent link: https://www.econbiz.de/10013092823

Consumption and Precautionary Saving : An Empirical Analysis Under Both Financial and Environmental Risks

Baiardi, Donatella - 2014

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the period 1965-2007. The results support the...

Persistent link: https://www.econbiz.de/10013067496

Hidden Insurance in a Moral Hazard Economy

Bertola, Giuseppe - 2013

We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...

Persistent link: https://www.econbiz.de/10013071425

Saving and Growth Under Borrowing Constraints Explaining the 'High Saving Rate' Puzzle

Wen, Yi - 2010

economies, such as Japan (in the 1950-70s) and China (over the past 30 years) …

Persistent link: https://www.econbiz.de/10013150935

The First-Order Approach to Moral Hazard Problems with Hidden Saving

Koehne, Sebastian - 2010

Moral hazard models with hidden saving decisions are useful to study such diverse problems as unemployment insurance, income taxation, executive compensation, or human capital policies. How can we solve such models? In general, this is very difficult. Under the conditions derived in this paper,...

Persistent link: https://www.econbiz.de/10013151639

Precautionary Saving and Endogenous Labor Supply With and Without Intertemporal Expected Utility

Nocetti, Diego - 2010

We analyze precautionary saving behavior in a framework with labor and non-labor income risks, an endogenous supply of labor, and a representation of preferences that disentangles attitudes towards risk, attitudes towards intertemporal smoothing, and ordinal preferences for consumption and...

Persistent link: https://www.econbiz.de/10013151927