Guiso, Luigi; Jappelli, Tullio; Terlizzese, Daniele - C.E.P.R. Discussion Papers - 1992
We test for the presence of precautionary saving using a self-reported measure of earnings uncertainty drawn from the … consistent with the theory of precautionary saving and with decreasing prudence. Earnings uncertainty, however, explains only a … small fraction of saving and asset accumulation. The results cast doubt on the empirical relevance of precautionary saving …