Arbeitspapier

Buffer-stock saving in a Krusell-Smith world

A large body of microeconomic evidence supports Friedman (1957)'s proposition that household income can be reasonably well described as having both transitory and permanent components. We show how to modify the widely-used macroeconomic model of Krusell and Smith (1998) to accommodate such a microeconomic income process. Our incorporation of substantial permanent income shocks helps our model to explain a substantial part of the large degree of empirical wealth heterogeneity that is unexplained in the baseline Krusell and Smith (1998) model, even without heterogeneity in preferences.

Sprache
Englisch

Erschienen in
Series: ECB Working Paper ; No. 1633

Klassifikation
Wirtschaft
Consumer Economics: Empirical Analysis
Personal Income, Wealth, and Their Distributions
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Macroeconomics: Consumption; Saving; Wealth
Thema
aggregate uncertainty
household income process
wealth inequality

Ereignis
Geistige Schöpfung
(wer)
Carroll, Christopher D.
Slacalek, Jiri
Tokuoka, Kiichi
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2014

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Carroll, Christopher D.
  • Slacalek, Jiri
  • Tokuoka, Kiichi
  • European Central Bank (ECB)

Entstanden

  • 2014

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