Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201836 
Year of Publication: 
2019
Series/Report no.: 
SAFE Working Paper No. 257
Publisher: 
Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe, Frankfurt a. M.
Abstract: 
We investigate the implications of experienced-based learning on consumption-saving and labor supply, two fundamental decisions in business cycle models. Using the Dutch Household Survey, we find that individuals who have experienced higher national unemployment rates over their lifetime save more, borrow less, and work less, after controlling for aggregate shocks, income, wealth, and demographics. Possibly explaining these behavioral responses, these individuals find it more important to save for retirement and to cover unexpected expenses, are more worried about losing their job, and dislike their job more. These results have implications for business cycle models and stabilization policies.
JEL: 
E7
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
469.69 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.