Theoretical foundations of buffer stock saving

Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main features of such models, including the existence of a target wealth ratio and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock savers.

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Year of publication:	2011
Authors:	Carroll, Christopher D.
Institutions:	Center for Financial Studies
Subject:	Precautionary Saving \| Buffer Stock Saving \| Marginal Propensity to Consume \| Permanent Income Hypothesis

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Extent:	application/pdf
Series:	CFS Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 2011/15
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010958518