Dissecting Saving Dynamics.

Dissecting Saving Dynamics.

We argue that the U.S. personal saving rate's long stability (from the 1960's through the early 1980's), subsequent steady decline (1980's - 2007), and recent substantial increase (2008 - 2011) can all be interpreted using a parsimonious 'buffer stock' model of optimal...

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Bibliographic Details
Main Author: Carroll, Christopher
Other Authors: Sommer, Martin, Slacalek, Jiri
Format: eBook
Language:English
Published: Washington : International Monetary Fund, 2012.
Series:IMF Working Papers.
Subjects:
Saving and investment.
Wealth.
wealth.
Saving and investment
Wealth
Online Access:Click for online access
Description
Summary:We argue that the U.S. personal saving rate's long stability (from the 1960's through the early 1980's), subsequent steady decline (1980's - 2007), and recent substantial increase (2008 - 2011) can all be interpreted using a parsimonious 'buffer stock' model of optimal consumption in the presence of labor income uncertainty and credit constraints. Saving in the model is affected by the gap between 'target' and actual wealth, with the target wealth determined by credit conditions and uncertainty. An estimated structural version of the model suggests that increased credit availability accounts for.
Physical Description:1 online resource (48 pages)
ISBN:9781475513660
1475513666
Source of Description, Etc. Note:Print version record.

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