Consumption and precautionary saving: An empirical analysis under both financial and environmental risks
نویسندگان
چکیده
منابع مشابه
Precautionary Saving and Consumption Fluctuations∗
This paper uses the consumption Euler equation to derive a decomposition of consumption growth into four sources. These are new information and three sources of predictable consumption growth: intertemporal substitution, changes in the preferences for consumption, and incomplete markets for consumption insurance. Using data on the expenditures of households, we implement the decomposition for t...
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This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
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One of the basic motives for saving is the accumulation of wealth to ensure 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 pricetaking households in an economy with incomplete markets differs substantially from the behavior of these same ho...
متن کاملPrecautionary Saving and Consumption Smoothing Across Time and Possibilities.
This paper examines how aversion to risk and aversion to intertemporal substitution determine the strength of the precautionary saving motive in a two-period model with Selden/Kreps-Porteus preferences. For small risks, we derive a measure of the strength of the precautionary saving motive which generalizes the concept of "prudence" introduced by Kimball (1990b). For large risks, we show that d...
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ژورنال
عنوان ژورنال: Economic Modelling
سال: 2013
ISSN: 0264-9993
DOI: 10.1016/j.econmod.2012.09.006