search query: @author Blundell, R. / total: 18
reference: 4 / 18
| Author: | Blundell, R. Stoker, T. M. |
| Title: | Consumption and the timing of income risk |
| Journal: | European Economic Review
1999 : MAR, VOL. 43:3, p. 475-507 |
| Index terms: | SAVINGS CONSUMPTION RISK STATISTICAL METHODS MODELS |
| Language: | eng |
| Abstract: | The impact of the timing of income risk is the subject of this article. There is a three-period framework used, and provided are approximate solutions for optimal consumption choices for preferences that display constant relative risk aversion and derive the relationship btw. innovations to income and innovations to consumption growth. In the paper, there are consumption-saving plans analyzed for several different situations of near term and distant future income risk, and different kinds of preferences. The article is concluded with demonstration of the high degree of accuracy of consumption approximations by comparing them to exact values computed by stochastic simulation. |
SCIMA