Does income uncertainty affect Spanish household consumption?

The aim of this paper is to study empirically the existence of precautionary saving in Spain using the micro data provided by the Spanish Survey of Household Finances. Using the panel component of these data I construct a measure of income risk, and use it to test for the strength of precautionary saving. I find that an increase of 1% in the standard deviation of income reduces household consumption by 5-7% depending on the specified model.

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Year of publication:	2018-06-04
Authors:	Lugilde, Alba

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Lugilde, Alba (2018): Does income uncertainty affect Spanish household consumption?
Classification:	D12 - Consumer Economics: Empirical Analysis ; D14 - Personal Finance ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	BASE

Persistent link: https://www.econbiz.de/10015260537