Precautionary savings under income uncertainty: a cross-sectional analysis |
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| Authors: | Valentino Dardanoni |
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| Institution: | Department of Economics , University of York , York , UKYO1 5DD |
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| Abstract: | The first part of this paper derives a closed fro solution for present consumption as a function of current and expected economic variables, which contains a precautionary component that is directly affected by future income risk. An estimating equation forthe structural relationship between savings and their determinants is discussed and tested using cross-sectional data from the 1984 UK Family Expenditure Survey. |
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