Precautionary Savings and the Wealth Distribution with Illiquid Durables
نویسندگان
چکیده
منابع مشابه
Precautionary Savings and the Wealth Distribution with Illiquid Durables
We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a standard Aiyagari model (i.e. a model with heterogeneous agents, idiosyncratic uncertainty, and borrowing constraints). Transactions costs induce an inaction region over which the durable stock and the associated user cost are not adjusted in respons...
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Between 2000 and 2006 house prices rose more than fifty percent in real terms. Over that same period households’ mortgage and home equity debt relative to income shot up. Anecdotal and empirical evidence suggest that households accessed the equity in their homes to fund current consumption. Little if any theoretical work, however, has examined the relationship between household consumption beha...
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This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
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This paper uses the Panel Study of Income Dynamics to provide some of the first direct evidence that wealth is systematically higher for consumers with predictably greater income uncertainty. However, the apparent pattern of precautionary wealth is not consistent with a standard parameterization of the life cycle model in which consumers are patient enough to begin saving for retirement early i...
متن کاملReturn migration, uncertainty and precautionary savings.
"This paper presents a life-cycle model where migrants determine re-migration and consumption simultaneously in a stochastic environment. Whether precautionary savings of migrants are above or below those of natives is ambiguous in general--the sign depends on the risk in host- and home-country labor markets and on the correlation of labor market shocks. Furthermore, the effect of an uncertain ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.478042