Work

Precautionary saving and subjective earnings variance

Year: 1997

Type: article

Abstract: In this paper, I examine a model of precautionary saving and I show that the fact that people may insure against income risk makes it difficult to evaluate the extent of precautionary accumulation by simply looking at the relationship between wealth and earnings variance. I also argue that occupations may represent a bad proxy for income risk.

Source: Economics Letters

DOI: 10.1016/s0165-1765(97)00239-5

Author: Annamaria Lusardi

Institution: Dartmouth College

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,030

Funders: Banca d'Italia, Università Bocconi