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Empirical Analysis of Household Savings Decisions in Context of Uncertainty: A Cross-Sectional Approach

  • Justin van de Ven

    ()

    (National Institute of Economic and Social Research, London; Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Paolo Lucchino

    (National Institute of Economic and Social Research, London)

Most empirical studies of savings behaviour that explicitly take account of the influence of uncertainty consider for identification data that describe the evolution of circumstances observed during an appreciable period of the life-course. Here we report results obtained for a dynamic programming model that has been adapted to permit identification of preference parameters using data observed at a point in time for a given population cross-section. We discuss the advantages of this approach, and our empirical results demonstrate its feasibility in context of contemporary computing technology.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2013n21.

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Length: 55pp
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:iae:iaewps:wp2013n21
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Web page: http://www.melbourneinstitute.com/
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  1. Gary V. Engelhardt & Anil Kumar, 2008. "The elasticity of intertemporal substitution: new evidence from 401(k) participation," Working Papers 0812, Federal Reserve Bank of Dallas.
  2. Dr Justin van de Ven & Dr Martin Weale, 2010. "An Empirical Investigation of Quasi-hyperbolic Discounting," NIESR Discussion Papers 2645, National Institute of Economic and Social Research.
  3. James Sefton & Justin vandeVen & Martin Weale, 2008. "Means Testing Retirement Benefits: fostering equity or discouraging savings?," Economic Journal, Royal Economic Society, vol. 118(528), pages 556-590, 04.
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  7. Paolo Lucchino & Dr Justin van de Ven, 2013. "Modelling the dynamic effects of transfer policy: the LINDA policy analysis tool," NIESR Discussion Papers 11168, National Institute of Economic and Social Research.
  8. Dr Justin van de Ven, 2004. "Estimating Equivalence Scales for Tax and Benefits Systems," NIESR Discussion Papers 113, National Institute of Economic and Social Research.
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  30. repec:nsr:niesrd:355 is not listed on IDEAS
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