Theoretical foundations of buffer stock saving

Arbeitspapier

Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main features of such models, including the existence of a target wealth ratio and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock savers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper ; No. 2011/15

Classification and Topics

• 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 ; Kassenhaltungsansatz ; Vorsorgesparen ; Konsumtheorie ; Zeitpräferenz ; Theorie

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Carroll, Christopher D.
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/57365
• URN: urn:nbn:de:hebis:30-102399
• Last update: 10.03.2025, 11:41 AM CET