Similar Search Results

Assessing Macro-Financial Risks of Household Debt in China

Han, Fei - 2020

High household indebtedness could constrain future consumption growth and increase financial stability risks. This paper uses household survey data to analyze both macroeconomic and finanical stability risks from the rapidly rising household debt in China. We find that rising household...

Persistent link: https://www.econbiz.de/10012843517

Concavity of the consumption function with recursive preferences

Malamud, Semyon - 2014

Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences is concave in the presence of income uncertainty. In this paper I show that concavity breaks down if we abandon time-separability. Namely, if an agent maximizing an isoelastic...

Persistent link: https://www.econbiz.de/10010412680

Status, control, and risk : how relative wealth perceptions shape risk-taking

Fehr, Dietmar; Reichlin, Yannick - 2025 - This Version: June 2025

We embed an experiment in a large-scale representative survey to investigate how relative wealth affects risk-taking and how this effect varies as a function of perceived control over life outcomes. Our results contest the common prediction of higher risk-taking in the middle of the...

Persistent link: https://www.econbiz.de/10015409570

Nudged into Better Portfolios and Lower Risk : Robo-Advice and Savings Decisions

Bräuer, Konstantin - 2021

Mutual fund and ETF savings plans (SPs) are becoming an increasingly important part of retail investor portfolios and many investors now adopt robo-advisors to obtain guidance on SP choices. Using data from a large online bank that introduced a robo-advising tool, I explore how robo-advice...

Persistent link: https://www.econbiz.de/10014351776

Labor supply and saving under uncertainty

Flodén, Martin (contributor) - 2005

of such self-insurance on precautionary saving. The analytical framework is a two-period model with saving and labor … precautionary saving when future wages are uncertain, and (ii) uncertainty about future wages raises current labor supply and … reduces future labor supply. -- precautionary saving ; prudence ; labor supply …

Persistent link: https://www.econbiz.de/10002757028

Fear and market failure : global imbalances and "self-insuranceʺ

Miller, Marcus (contributor); Zhang, Lei (contributor) - 2007

This paper proposes an integrated framework to analyze jointly two key issues: the emergence of global imbalances and the precautionary motive for accumulating reserves. Standard models of general equilibrium would predict modest current account surpluses in the emerging markets if they face...

Persistent link: https://www.econbiz.de/10003775798

Unemployment and portfolio choice : does persistence matter?

Bremus, Franziska; Kuzin, Vladimir - 2011 - This version: October 13, 2011

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming unemployed. These hedging mechanisms are used differently across countries. In this paper, we use a life cycle model to study the effects of unemployment on the portfolio choice of...

Persistent link: https://www.econbiz.de/10009515596

Income uncertainty and household savings in China

Chamon, Marcos; Liu, Kai; Prasad, Eswar S. - 2010

China's household saving rate has increased markedly since the mid-1990s and the agesaving profile has become U … households, respectively, to raise their saving rates. These two factors account for over half of the increase in China's urban …

Persistent link: https://www.econbiz.de/10009304386

Household savings decision and income uncertainty

Beznoska, Martin; Ochmann, Richard - 2010

This paper empirically investigates the effects of changes in the interest rate as well as transitory income uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the uncompensated interest rate elasticity for savings, in...

Persistent link: https://www.econbiz.de/10009261306

Saving on a rainy day, borrowing for a rainy day

Alan, Sule; Crossley, Thomas F.; Low, Hamish - 2012

the current and recent recessions. We show empirically that these saving spikes were short-lived and common to all working … credit; temporary shocks to the supply of credit generate increases in saving only among younger agents. …

Persistent link: https://www.econbiz.de/10009530241