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Consumption and precautionary saving: An empirical analysis under both financial and environmental risks

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  • Baiardi, Donatella
  • Manera, Matteo
  • Menegatti, Mario

Abstract

This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the period 1965–2007.

Suggested Citation

  • Baiardi, Donatella & Manera, Matteo & Menegatti, Mario, 2013. "Consumption and precautionary saving: An empirical analysis under both financial and environmental risks," Economic Modelling, Elsevier, vol. 30(C), pages 157-166.
  • Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:157-166
    DOI: 10.1016/j.econmod.2012.09.006
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    Cited by:

    1. repec:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0364-8 is not listed on IDEAS
    2. Donatella Baiardi & Matteo Manera & Mario Menegatti, 2014. "The Effects of Environmental Risk on Consumption: an Empirical Analysis on the Mediterranean Countries," Working Papers 271, University of Milano-Bicocca, Department of Economics, revised Apr 2014.
    3. Lugilde, Alba & Bande, Roberto & Riveiro, Dolores, 2017. "Precautionary Saving: a review of the theory and the evidence," MPRA Paper 77511, University Library of Munich, Germany.

    More about this item

    Keywords

    Consumption; Precautionary saving; Financial risk; Environmental risk; Prudence; Relative risk aversion; Uncertainty;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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