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Precaution Of Savings Under Uncertain Circumstances

Author

Listed:
  • Constantin ANGHELACHE

    (Bucharest University of Economic Studies, „ARTIFEX” University of Bucharest)

  • Aurelian DIACONU

    („ARTIFEX” University of Bucharest)

  • Emilia STANCIU

    (Bucharest University of Economic Studies)

Abstract

The problem of certainty, of safety which influences the decision-makers’ behaviour is both subjective and objective. In a wide temporal perspective with reference to the full horizon of the decision-maker’s life, the aspects related to the factors that constrain or relax the decisional behavior gather under the umbrella of the subjective definition of resistance and aversion to fluctuations in consumption, but also to risk, thus becaming part of the decision framework in the decision maker’s lifetime. The ratio between consumption and safe decision-making is a factor that ensures the increase or the decrease in consumption. Under unsafe conditions, the decision-maker will incline towards a saving behavi, with the view to ensuring a certain continuity in consumption, but also with the benefit of ensuring his own existenceour.Neither the idea of a cautious behavior, nor that of risky saving is foreign to the decision-maker in such circumstances, that being an issue necessary to define and clarify.

Suggested Citation

  • Constantin ANGHELACHE & Aurelian DIACONU & Emilia STANCIU, 2017. "Precaution Of Savings Under Uncertain Circumstances," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(2), pages 30-37, February.
  • Handle: RePEc:rsr:supplm:v:65:y:2017:i:2:p:30-37
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    References listed on IDEAS

    as
    1. Grenadier, Steven R. & Wang, Neng, 2007. "Investment under uncertainty and time-inconsistent preferences," Journal of Financial Economics, Elsevier, vol. 84(1), pages 2-39, April.
    2. Salman Arif & Charles M. C. Lee, 2014. "Aggregate Investment and Investor Sentiment," Review of Financial Studies, Society for Financial Studies, vol. 27(11), pages 3241-3279.
    3. Nicholas Bloom, 2009. "The Impact of Uncertainty Shocks," Econometrica, Econometric Society, vol. 77(3), pages 623-685, May.
    4. William Miles, 2009. "Irreversibility, Uncertainty and Housing Investment," The Journal of Real Estate Finance and Economics, Springer, vol. 38(2), pages 173-182, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    income; uncertainty; savings; planning; consumption;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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