The degree of precautionary saving: A reexamination
AbstractExtending Dynan's methodology (1993), we show that a significant frac tion of the prudence parameter puzzle can be explained by a downward omitted variable bias. Further, the estimated prudence is substantially higher for liquidity-constrained households.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 96 (2007)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Yasuyuki Sawada & Jeong-Joon Lee, 2006. "The Degree of Precautionary Saving: A Reexamination," CIRJE F-Series CIRJE-F-448, CIRJE, Faculty of Economics, University of Tokyo.
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