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dc.contributor.authorFlodén, Martinen_US
dc.date.accessioned2012-03-28T13:11:45Z-
dc.date.available2012-03-28T13:11:45Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/56377-
dc.description.abstractThis paper examines aggregate savings in a general equilibrium model where infinitely lived households face volatile (and possibly uncertain) income paths, hold a risk-free asset, and face a liquidity constraint. I first show that the equilibrium capital stock in an economy without uncertainty, but where individual income varies, can be larger than in an economy where each household's income is constant. When income is stochastic, the equilibrium capital stock is always larger than when income is constant. This additional capital accumulation has sometimes been interpreted as precautionary savings, but I demonstrate that it is mostly generated by permanent-income motives.en_US
dc.language.isoengen_US
dc.publisherEkonomiska Forskningsinst. Stockholmen_US
dc.relation.ispartofseriesSSE/EFI Working Paper Series in Economics and Finance 591en_US
dc.subject.jelD52en_US
dc.subject.jelD91en_US
dc.subject.jelE21en_US
dc.subject.ddc330en_US
dc.subject.keywordequilibrium interest rateen_US
dc.subject.keywordaggregate savingsen_US
dc.subject.keywordprecautionary savingen_US
dc.subject.keywordinfinite horizonen_US
dc.subject.keywordgeneral equilibriumen_US
dc.subject.stwSparenen_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwInvestitionen_US
dc.subject.stwIntertemporale Allokationen_US
dc.subject.stwTheorieen_US
dc.titleAggregate savings when individual income variesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn482800755en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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