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Consumption and Savings Decisions: Teaching The Precautionary Motive In Intermediary Macroeconomics Courses

Author

Listed:
  • Fernando Barros

    (FEARP-USP)

  • Fábio A. R. Gomes

    (FEARP-USP)

  • Thalita S. Calcini

    (FFCLRP-USP)

Abstract

Most undergraduate macroeconomics courses do not address the precautionary motive, an essential factor behind savings decisions. This motive arises when future income is uncertain; consequently, we […]

Suggested Citation

  • Fernando Barros & Fábio A. R. Gomes & Thalita S. Calcini, 2022. "Consumption and Savings Decisions: Teaching The Precautionary Motive In Intermediary Macroeconomics Courses," Journal of Economics Teaching, Journal of Economics Teaching, vol. 7(1), pages 1-17, January.
    • Handle: RePEc:jtc:journl:v:7:y:2022:i:1:p:1-17
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    References listed on IDEAS

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    1. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
    2. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    3. Christopher D. Carroll, 1992. "The Buffer-Stock Theory of Saving: Some Macroeconomic Evidence," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 61-156.
    4. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1797-1855, December.
    5. Hayne E. Leland, 1968. "Saving and Uncertainty: The Precautionary Demand for Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(3), pages 465-473.
    6. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intermediate; Macroeconomics;

    JEL classification:

    • A21 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Pre-college
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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