Precautionary Saving in a Markovian Earnings Environment
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DOI: 10.1016/j.red.2017.12.004
Abstract: Under what conditions does an increase in the future income risk (in the sense of second order stochastic dominance) result in an increase in savings? This paper establishes a novel sufficient condition for the case… read more here.
Keywords: markovian earnings; earnings environment; saving markovian; precautionary saving ... See more keywords