The effect of precautionary saving on consumption in Sweden

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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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ژورنال

عنوان ژورنال: Applied Economics

سال: 2001

ISSN: 1466-4283,0003-6846

DOI: 10.1080/000368401750106289