Theoretical foundations of buffer stock saving

Buffer-stock versions of the dynamic stochastic optimizing model of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main characteristics of buffer stock models, including the existence of a target level of wealth and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock consumers.

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Year of publication:	2004
Authors:	Carroll, Christopher D.
Publisher:	Baltimore, MD : The Johns Hopkins University, Department of Economics
Subject:	Sparen \| Dynamische Optimierung \| Gesamtwirtschaftlicher Konsum \| Kleines-offenes-Land \| Precautionary saving \| buffer stock saving \| marginal propensity to consume \| permanent income hypothesis

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Series:	Working Paper ; 517
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	472399977 [GVK] hdl:10419/72011 [Handle]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	EconStor

Persistent link: https://www.econbiz.de/10010293477