Download or read book Wealth Accumulation and Precautionary Savings written by Marco Cagetti and published by . This book was released on 2000 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Earnings Uncertainty Precautionary Savings and Aggregate Wealth Accumulation written by Ricardo J. Caballero and published by . This book was released on 1990 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Precautionary Savings and Wealth Accumulation with Parameter Uncertainty and Learning written by Michael J. Sampson and published by . This book was released on 1994 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dissecting Saving Dynamics written by Mr.Christopher Carroll and published by International Monetary Fund. This book was released on 2012-09-01 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: We argue that the U.S. personal saving rate’s long stability (from the 1960s through the early 1980s), subsequent steady decline (1980s - 2007), and recent substantial increase (2008 - 2011) can all be interpreted using a parsimonious ‘buffer stock’ model of optimal consumption in the presence of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between ‘target’ and actual wealth, with the target wealth determined by credit conditions and uncertainty. An estimated structural version of the model suggests that increased credit availability accounts for most of the saving rate’s long-term decline, while fluctuations in net wealth and uncertainty capture the bulk of the business-cycle variation.

Download or read book The precautionary saving motive and wealth accumulation written by and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Disentangling the Importance of the Precautionary Saving Motive written by Arthur B. Kennickell and published by . This book was released on 2004 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: We assess the importance of the precautionary saving motive by relying on a direct question about precautionary wealth from the 1995 and 1998 waves of the Survey of Consumer Finances. In this survey, a new question has been designed to elicit the amount of desired precautionary wealth. This allows us to bound the amount of precautionary accumulation and to overcome many of the problems of previous works on this topic. We find that a precautionary saving motive exists and affects virtually every type of household. Even though this motive does not give rise to large amounts of wealth for young and middle-age households, it is particularly important for two groups: older households and business owners. Overall, we provide strong evidence that we need to take the precautionary saving motive into account when modeling saving behavior.

Download or read book Precautionary Savings and the Wealth Distribution with Illiquid Durables written by Joseph W. Gruber and published by . This book was released on 2003 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Empirical Importance of Precautionary Saving written by Pierre-Olivier Gourinchas and published by . This book was released on 2001 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the consumption and wealth accumulation of price-taking households in an economy with incomplete markets differs substantially from the behavior of these same households in the equivalent economy with complete-markets. The question we address in this article is whether we find this difference to be large in practice. What is the empirical importance of precautionary saving? We provide a simple decomposition that characterizes the importance of precautionary saving in the U.S. economy. We use this decomposition as an organizing framework to present four main findings: (a) the concavity of the consumption policy rule, (b) the importance of precautionary saving for life-cycle saving and wealth accumulation, (c) the contribution of changes in risk to fluctuations in aggregate consumption and (d) the significant impact of incomplete markets on aggregate fluctuations in calibrated general equilibrium models. We conclude with directions for future research.

Download or read book Precautionary Saving Wealth Accumulation and Pensions written by Peter Corstiaan Santen and published by . This book was released on 2013 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Precautionary Saving and the Accumulation of Wealth written by Annamaria Lusardi and published by . This book was released on 2000 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Income Uncertainty Precautionary Saving and Social Insurance written by Matthew Joyce and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 are at odds with the estimates of precautionary wealth in the United States where related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we show that differences in means-tested social insurance programs can rationalize these large differences in our empirical results.

Download or read book Earnings Uncertainty and Precautionary Saving written by Luigi Guiso and published by . This book was released on 1992 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Saving and the Accumulation of Wealth written by Albert Ando and published by Cambridge University Press. This book was released on 2006-11-23 with total page 428 pages. Available in PDF, EPUB and Kindle. Book excerpt: The evolution of private saving and its interaction with government fiscal policy play an important and complex role in the development of the national economy. To gain insight into this process, we must first understand the savings behavior of individual households and the ways in which they aggregate over the entire population to produce national saving. Italy provides an ideal laboratory in which to assess the impact of government and private transfer, imperfections in the capital markets, productivity growth and shifting demographic patterns on the saving behavior of individual households and on their aggregation into total private saving. The book draws on the Italian experience and data, and offers new findings on many aspects of the process of saving determination.

Download or read book Precautionary Savings in the Great Recession written by Mr.Ashoka Mody and published by International Monetary Fund. This book was released on 2012-02-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Heightened uncertainty since the onset of the Great Recession has materially increased saving rates, contributing to lower consumption and GDP growth. Consistent with a model of precautionary savings in the face of uncertainty, we find for a panel of advanced economies that greater labor income uncertainty is significantly associated with higher household savings. These results are robust to controlling for other determinants of saving rates, including wealth-to-income ratios, the government fiscal balance, demographics, credit conditions, and global growth and financial stress. Our estimates imply that at least two-fifths of the sharp increase in household saving rates between 2007 and 2009 can be attributed to the precautionary savings motive.

Download or read book Precautionary Savings and Income Uncertainty written by Keiko Murata and published by . This book was released on 2003 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Precautionary Saving and Social Insurance written by R. Glenn Hubbard and published by . This book was released on 1994 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microdata studies of household saving often find a significant group in the population with virtually no wealth, raising concerns about heterogeneity in motives for saving. In particular, this heterogeneity has been interpreted as evidence against the life-cycle model of saving. This paper argues that a life-cycle model can replicate observed patterns in household wealth accumulation after accounting explicitly for precautionary saving and asset-based means- tested social insurance. We demonstrate theoretically that social insurance programs with means tests based on assets discourage saving by households with low expected lifetime income. In addition, we evaluate the model using a dynamic programming model with four state variables. Assuming common preference parameters across lifetime- income groups, we are able to replicate the empirical pattern that low-income households are more likely than high-income households to hold virtually no wealth. Low wealth accumulation can be explained as a utility-maximizing response to asset-based means-tested welfare programs

Download or read book Precautionary Savings and Wealth Distribution Under Habit Formation Preferences written by Antonia Díaz and published by . This book was released on 2002 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: