Risk and Savings: a Taxonomy

Research output: Working paperProfessional

Abstract

Risk may induce precautionary saving but it can also reduce saving. The theoretical literature recognizes both possibilities, but favors a positive effect (both for developed and developing countries); the empirical literature is divided, reporting (small) positive effects for developed economies and (large) negative effects for developing countries. We show in a 2-period model how the effect of risk on savings depends not only on preferences but also on the type of risk.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2008

Publication series

NameDiscussion paper TI
No.08-071/2

Fingerprint

Savings
Taxonomy
Developing countries
Precautionary saving
Developed countries

Cite this

Gunning, J. W. (2008). Risk and Savings: a Taxonomy. (Discussion paper TI; No. 08-071/2). Amsterdam: Tinbergen Instituut.
Gunning, Jan Willem. / Risk and Savings: a Taxonomy. Amsterdam : Tinbergen Instituut, 2008. (Discussion paper TI; 08-071/2).
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Gunning, JW 2008 'Risk and Savings: a Taxonomy' Discussion paper TI, no. 08-071/2, Tinbergen Instituut, Amsterdam.

Risk and Savings: a Taxonomy. / Gunning, Jan Willem.

Amsterdam : Tinbergen Instituut, 2008. (Discussion paper TI; No. 08-071/2).

Research output: Working paperProfessional

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Gunning JW. Risk and Savings: a Taxonomy. Amsterdam: Tinbergen Instituut. 2008. (Discussion paper TI; 08-071/2).