Arbeitspapier

Theoretical foundations of buffer stock saving

Buffer-stock versions of the dynamic stochastic optimizing model of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main characteristics of buffer stock models, including the existence of a target level of wealth and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock consumers.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 517

Classification
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Macroeconomics: Consumption; Saving; Wealth
Subject
Precautionary saving
buffer stock saving
marginal propensity to consume
permanent income hypothesis
Sparen
Dynamische Optimierung
Gesamtwirtschaftlicher Konsum
Kleines-offenes-Land

Event
Geistige Schöpfung
(who)
Carroll, Christopher D.
Event
Veröffentlichung
(who)
The Johns Hopkins University, Department of Economics
(where)
Baltimore, MD
(when)
2004

Handle
Last update
20.09.2024, 8:24 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Carroll, Christopher D.
  • The Johns Hopkins University, Department of Economics

Time of origin

  • 2004

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