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Title: Precautionary Savings--A Panel Study
Resulting in 1 citation.
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Kazarosian, Mark Vahram |
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Precautionary Savings--A Panel Study Review of Economics and Statistics 79,2 (May 1997): 241-247. Also: http://www.jstor.org/stable/2951457 Cohort(s): Older Men Publisher: Harvard University Press Keyword(s): Government Regulation; Income Dynamics/Shocks; Retirement/Retirement Planning; Savings Permission to reprint the abstract has not been received from the publisher. Theoretical literature shows that income uncertainty boosts saving, yet empirical work is incomplete. The precautionary motive for saving is tested for by using panel data. Knowing this motive's size is important for gauging the responsiveness of saving to government programs that reduce uncertainty, and for comparison to other motives, such as bequests. Most empirical studies of precautionary saving use either aggregate time-series or cross-sectional data, which cannot capture the effects of individual income uncertainty. Measures of total, permanent, and transitory income uncertainty are derived from panel data - the National Longitudinal Survey - and a strong precautionary motive is found. A doubling of uncertainty increases the ratio of wealth to permanent income by 29%. Photocopy available from ABI/INFORM. |
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Bibliography Citation
Kazarosian, Mark Vahram. "Precautionary Savings--A Panel Study." Review of Economics and Statistics 79,2 (May 1997): 241-247.
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