Resource title

A reconciliation of two alternative approaches towards buffer stock saving

Resource image

image for OpenScout resource :: A reconciliation of two alternative approaches towards buffer stock saving

Resource description

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.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://eprints.lse.ac.uk/194/1/recon.pdf

Resource license