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Saving response to unemployment of a sibling

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  • Tokuoka, Kiichi

Abstract

Standard theoretical models of household saving behavior do not typically assume that household perceptions of the world change in response to observed events. In light of the potential importance of such perception changes (e.g., after a financial crisis), this paper considers the hypothesis that a household's saving rate rises through informal learning after a sibling (direct or in-law) has been unemployed. The empirical results in this paper are consistent with the learning hypothesis, with coefficients estimated by the instrumental variable (IV) method implying that a household's saving rate increases by 2–3 percentage points if a sibling has been unemployed.

Suggested Citation

  • Tokuoka, Kiichi, 2013. "Saving response to unemployment of a sibling," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 58-75.
    • Handle: RePEc:eee:jeborg:v:89:y:2013:i:c:p:58-75
    DOI: 10.1016/j.jebo.2013.03.010
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    Cited by:

    1. Kiichi Tokuoka, 2017. "Is stock investment contagious among siblings?," Empirical Economics, Springer, vol. 52(4), pages 1505-1528, June.
    2. Lehtoranta, Antti, 2014. "Childhood experience of father's job loss and stock market participation," Bank of Finland Research Discussion Papers 30/2014, Bank of Finland.
    3. repec:zbw:bofrdp:2014_030 is not listed on IDEAS
    4. Aneta Maria Kłopocka & Tomasz Kopczyński & Grażyna Lenicka-Bajer, 2014. "Financial Situation And Attitudes Towards Saving In Polish Society:Evidence From Micro Data," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 476-486, May.
    5. J. Magendans & J.M. Gutteling & S. Zebel, 2017. "Psychological determinants of financial buffer saving: the influence of financial risk tolerance and regulatory focus," Journal of Risk Research, Taylor & Francis Journals, vol. 20(8), pages 1076-1093, August.
    6. Lehtoranta, Antti, 2014. "Childhood experience of father's job loss and stock market participation," Research Discussion Papers 30/2014, Bank of Finland.
    7. Kiichi Tokuoka, 2015. "Do Consumers Learn from Their Own Experiences?," The Japanese Economic Review, Japanese Economic Association, vol. 66(4), pages 466-491, December.

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    More about this item

    Keywords

    Saving; Learning; Unemployment; Sibling;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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