Unemployment Risk and Precautionary Wealth: Evidence from Households' Balance Sheets
نویسندگان
چکیده
منابع مشابه
Precautionary Saving and Precautionary Wealth
This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
متن کاملUnemployment Expectations , Jumping ( S , s ) Triggers , and Household Balance Sheets
This paper examines the relationship between household balance sheets, consumer purchases, and expectations. We find few robust empirical relationships between balance sheet measures and spending, but we do find that unemployment expectations are robustly correlated with spending. We then construct a formal model of durables and nondurables consumption with an explicit role for unemployment and...
متن کاملDoes Relative Risk Aversion Vary with Wealth? Evidence from Households’ Portfolio Choice Data∗
In this article, we explore whether relative risk aversion varies with wealth. First, we derive theoretical predictions on how risky shares respond to wealth fluctuations in a portfolio choice model with both external habits and time-varying labor income. Our analytical results indicate that: (1) for each household, there are two channels through which the risky share responds to wealth fluctua...
متن کاملThe Nature of Precautionary Wealth
This paper uses the Panel Study of Income Dynamics to provide some of the first direct evidence that wealth is systematically higher for consumers with predictably greater income uncertainty. However, the apparent pattern of precautionary wealth is not consistent with a standard parameterization of the life cycle model in which consumers are patient enough to begin saving for retirement early i...
متن کاملHouseholds’ Consumption under the Habit Formation Hypothesis. Evidence from Italian Households using the Survey of Household Income and Wealth (SHIW)
This paper explores the mis-specification of preferences as a cause of the poor empirical performance of the traditional Life Cycle/Permanent Income model in explaining Italian households’ consumption decisions. Consumption profiles generated under strict life cycle models could be hardly reconciled with those exhibited by Italian households. We estimate how household consumption evolves over t...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Economics and Statistics
سال: 2003
ISSN: 0034-6535,1530-9142
DOI: 10.1162/003465303322369740