Precautionary Saving Over the Business Cycle
Bibliographic Data
| ID | 9709736 |
|---|---|
| Authors | Edouard Challe (CNRS, Ecole Polytechnique and Banque de France), Xavier Ragot (CNRS, Paris School of Economics and OFCE) |
| Year | 2016 |
| Volume | 126 |
| Issue | 590 |
| Pages | 135-164 |
| Publication date | 2016-02-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12189 |
| OpenAlex | W2112085509 |
| Language | EN |
| Citations received | 7 |
| References cited | 39 |
We study the macroeconomic implications of time-varying precautionary savings within a general equilibrium model with borrowing constraints, aggregate shocks and uninsurable idiosyncratic unemployment risk. Our framework generates limited cross-sectional household heterogeneity as an equilibrium outcome, thereby making it possible to analyse the role of precautionary saving over the business cycle in an analytically tractable way. The time-series behaviour of aggregate consumption generated by our model is closer to the data than that implied by the hand-to-mouth and representative-agent models, and it is comparable to that produced by the Krusell and Smith (1998) model
Aggregate (composite · Business cycle · Consumption (sociology · Econometrics · Economics · General equilibrium theory · Macroeconomics · Market liquidity · Microeconomics · Monetary economics · Outcome (game theory · Precautionary savings · Systematic risk · Unemployment · Economic theories and models · Financial Literacy, Pension, Retirement Analysis · Monetary Policy and Economic Impact
Disentangling the effect of household debt on consumption
The Unemployment‐Risk Channel in Business‐Cycle Fluctuations
From Micro Behaviors to Macro Dynamics
Workforce Participation and Economic Security
Saving in the world
Optimal Fiscal Policy with Heterogeneous Agents and Capital
Internal and external uncertainties and macroeconomic downside risk in China
Who is Credit Constrained in the U. S. Economy?
Unequal we stand
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
Understanding the Effects of Government Spending on Consumption
The Buffer-Stock Theory of Saving
The nature of precautionary wealth
Precautionary Saving in the Small and in the Large
Uninsured Idiosyncratic Risk and Aggregate Saving
House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle
How Important Is Precautionary Saving
Incomplete Markets, Liquidation Risk, and the Term Structure of Interest Rates
A Unified Framework for Monetary Theory and Policy Analysis
How Prudent are Consumers
The Production of Human Capital and the Life Cycle of Earnings
Consumption and Liquidity Constraints
Reconciling Cyclical Movements in the Marginal Value of Time and the Marginal Product of Labor
Moral Hazard versus Liquidity and Optimal Unemployment Insurance
Cyclical Dynamics in Idiosyncratic Labor Market Risk
Asset Pricing with Heterogeneous Consumers
Income and Wealth Heterogeneity in the Macroeconomy
Credit Cycles
A Simple Test of Consumption Insurance
Skills, Tasks and Technologies
| Unique citing works | 7 |
|---|---|
| Citations per year | 0,78 |
| Citation span | 2017 - 2026 (10) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 7 |