Consumption and uncertainty: a panel analysis in Italian Regions
This work tests precautionary saving theory in Italian regions, examining the relationship between consumption growth and income uncertainty in a panel of five-year averages in the period 1981 to 2000. The analysis used two different measures for income uncertainty. The first is a naive measure given by the variance of GDP growth rates while the second is a more sophisticated one obtained by computing the conditional variance by means of the expectation of GDP growth. This expectation is obtained by using the best ARMA process for each region. The results obtained confirm the importance of the precautionary saving motive in consumption decisions.
Volume (Year): 14 (2007)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEL20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alessandra Guariglia & Byung-Yeon Kim, 2003.
"The Effects of Consumption Variability on Saving: Evidence from a Panel of Muscovite Households,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 65(3), pages 357-377, 07.
- Guariglia, Alessandra & Kim, Byung-Yeon, 1999. "The effects of consumption variability on savings, evidence from a panel of Muscovite households," Economics Discussion Papers 10000, University of Essex, Department of Economics.
- Steigerwald, Doug, 1997. "Consumption Adjustment under Changing Income Uncertainty," University of California at Santa Barbara, Economics Working Paper Series qt5kp8k6xc, Department of Economics, UC Santa Barbara.
- Hahm, J.-H. & Steigerwald, D.G., 1998. "Consumption Adjustment under Changing Income Uncertainty," Papers 345, Australian National University - Department of Economics.
- Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1992. "Earnings uncertainty and precautionary saving," Journal of Monetary Economics, Elsevier, vol. 30(2), pages 307-337, November.
- Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1992. "Earnings Uncertainty and Precautionary Saving," CEPR Discussion Papers 699, C.E.P.R. Discussion Papers.
- Giucca, P. & Jappelli, T. & Terlizzese, D., 1992. "Earning Uncertainty and Precautionary Saving," Papers 161, Banca Italia - Servizio di Studi.
- Menegatti, Mario, 2001. "On the Conditions for Precautionary Saving," Journal of Economic Theory, Elsevier, vol. 98(1), pages 189-193, May.
- Lyhagen, Johan, 1997. "The Effect of Precautionary Saving on Consumption in Sweden," Working Papers 58, National Institute of Economic Research.
- Antonello Scorcu, 1998. "Consumption risk-sharing in Italy," Applied Economics, Taylor & Francis Journals, vol. 30(3), pages 407-414.
- Johan Lyhagen, 2001. "The effect of precautionary saving on consumption in Sweden," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 673-681.
- Karen E. Dynan, 1993. "How prudent are consumers?," Working Paper Series / Economic Activity Section 135, Board of Governors of the Federal Reserve System (U.S.).
- Lusardi, Annamaria, 1998. "On the Importance of the Precautionary Saving Motive," American Economic Review, American Economic Association, vol. 88(2), pages 449-453, May.
- Dynan, Karen E, 1993. "How Prudent Are Consumers?," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 1104-1113, December. Full references (including those not matched with items on IDEAS)