Similar Search Results

Earnings Uncertainty and Precautionary Saving

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 … 1989 Italian Survey of Household Income and Wealth. The effect of uncertainty on saving and wealth accumulations is … consistent with the theory of precautionary saving and with decreasing prudence. Earnings uncertainty, however, explains only a …

Persistent link: https://www.econbiz.de/10005123641

Background Uncertainty and the Demand for Insurance Against Insurable Risks

Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 1996

casualty insurance increases with earnings uncertainty. This finding is consistent with consumer preferences being …

Persistent link: https://www.econbiz.de/10005123926

Dynamic Choice, Independence, and Emotions

Hopfensitz, Astrid; Winden, Frans A.A.M. van - C.E.P.R. Discussion Papers - 2007

From the viewpoint of the independence axiom of expected utility theory, an interesting empirical dynamic choice problem involves the presence of a 'global risk', that is, a chance of losing everything whichever safe or risky option is chosen. In this experimental study, participants have to...

Persistent link: https://www.econbiz.de/10005136625

The Empirical Importance of Precautionary Saving

Gourinchas, Pierre-Olivier; Parker, Jonathan A - C.E.P.R. Discussion Papers - 2001

One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the consumption and wealth accumulation of price-taking...

Persistent link: https://www.econbiz.de/10005504693

Policy Uncertainty and Precautionary Savings

Giavazzi, Francesco; McMahon, Michael - C.E.P.R. Discussion Papers - 2008

reacted to the increase in uncertainty about the future path of income that such an event produced. Our estimates are obtained …

Persistent link: https://www.econbiz.de/10005497866

The Precautionary Saving Effect of Government Consumption

Ercolani, Valerio; Pavoni, Nicola - C.E.P.R. Discussion Papers - 2014

We study a largely neglected channel through which government expenditures boost private consumption. We set up a lifecycle model in which households are subject to health shocks. We estimate a negative impact of public health care on household consumption dispersion, wealth and saving....

Persistent link: https://www.econbiz.de/10011083638

How Do Politicians Save? Buffer Stock Management of Unemployment Insurance Finance

Craig, Steven G.; Hemissi, Wided; Mukherjee, Satadru; … - C.E.P.R. Discussion Papers - 2013

This paper successfully fits a model of forward looking government savings behavior to data from the U.S. state Unemployment Insurance (UI) programs 1976-2008. Specifically, we find states do not perfectly smooth tax rates in Barro's sense, but follow behavior consistent with a buffer stock...

Persistent link: https://www.econbiz.de/10011083923

Wealth and Volatility

Heathcote, Jonathan; Perri, Fabrizio - C.E.P.R. Discussion Papers - 2015

Periods of low household wealth in United States macroeconomic history have also been periods of high business cycle volatility. This paper develops a simple model that can exhibit self-fulfilling fluctuations in the expected path for unemployment. The novel feature is that the scope for...

Persistent link: https://www.econbiz.de/10011186616

The Buffer-Stock Model and the Aggregate Propensity to Consume: A Panel-Data Study of the US States

Luengo-Prado, Maria Jose; Sørensen, Bent E - C.E.P.R. Discussion Papers - 2004

marginal effects of changing persistence of income shocks, aggregate-level uncertainty, and individual-level risk. Next, we … to the predictions of the model and while the effect of aggregate uncertainty cannot be determined precisely, indicators … of individual level uncertainty have strong effects consistent with the model. Overall, the buffer-stock model clearly …

Persistent link: https://www.econbiz.de/10005791978

Income Risk, Borrowing Constraints and Portfolio Choice

Guiso, Luigi; Jappelli, Tullio; Terlizzese, Daniele - C.E.P.R. Discussion Papers - 1994

Economic theory suggests that uninsurable income risk, health risk and the expectation of future borrowing constraints can reduce the share of risky assets in a household's portfolio. In fact, if its utility function exhibits decreasing absolute risk aversion and decreasing prudence, a household...

Persistent link: https://www.econbiz.de/10005124154