The nature of precautionary wealth
Article Abstract:
Findings based on data from the Panel Study of Income Dynamics reveals contradictory results about the patterns of precautionary wealth in comparison with a standard parameterization of the life cycle model. Contrary to the life cycle model, which asserts that consumers save early for retirement, evidence reveals that consumers act in conformity with the 'buffer-stock models of saving from Carroll (1992,1997) or Deaton (1991). Wealth is also shown to be constantly greater for consumers with higher income uncertainty.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1997
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The augmented Solow model and the productivity slowdown
Article Abstract:
The unfavorable correlation between the growth rates of GDP and population may mirror the impact of higher living criterion on desired family size, instead of the impact of population destiny on productivity. Correspondingly, the favorable correlation between GDP and investment may mirror the presence of an unobserved third power that both makes a nation more prolific and promotes saving and investment.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1998
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