A reconciliation of two alternative approaches towards buffer stock saving
Michaelides, A.
(2003).
A reconciliation of two alternative approaches towards buffer stock saving.
Economics Letters,
79(1), 137-143.
This paper shows that the two main models in the buffer stock saving literature can be nested in a model that varies the level of available social insurance. Equivalently, the assumption about the time series process for labor income (and social insurance during unemployment) is crucial in determining the level (but not the shape) of optimal consumption as a function of liquid wealth.
| Item Type | Article |
|---|---|
| Copyright holders | Copyright © 2002 Elsevier Science B.V. LSE has developed LSE Research Online so that users may access research output of the School. Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright own |
| Departments |
LSE > Research Centres > Financial Markets Group LSE > Academic Departments > Economics |
| Date Deposited | 29 Jun 2006 |
| URI | https://researchonline.lse.ac.uk/id/eprint/194 |
Explore Further
- D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
- E21 - Macroeconomics: Consumption; Saving; Aggregate Physical and Financial Consumer Wealth
- https://www.scopus.com/pages/publications/0037400322 (Scopus publication)
- http://www1.elsevier.com/homepage/sae/econworld/ec... (Official URL)