search query: @author Hubbard, R. / total: 7
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| Author: | Hubbard, R. |
| Title: | Expanding the life-sycle model: precautinary saving and public policy |
| Journal: | American Economic Review
1994 : MAY, VOL. 84:2, p. 174-179 |
| Index terms: | LIFE CYCLES MODELS PUBLIC POLICY |
| Language: | eng |
| Abstract: | One of the key puzzles in understanding saving behavior is not so much why people save but why people don't save. In this paper, the authors use data from the 1989 PSID (Panel Study of Income Dynamics, 1984) to examine transitions in wealth holdings between 1984 and 1989. Their model implies that in many cases saving rates will be low among those with low initial levels of wealth. The authors find that this is consistent with evidence from PSID. The model can explain the saving behavior of "savers" and "nonsavers" alike. |
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