Consumption Adjustment under Changing Income Uncertainty

J.-H. Hahm and Douglas Gardiner Steigerwald

Working Papers from Australian National University - Department of Economics

Abstract: We study the effect of income uncertainty on consumption in a model that includes precautionary saving. In contrast to previous studies, we focus on time-series variation in income uncertainty. Our time-series measure of income uncertainty is constructed from a panel of forecasts. We find evidence of precautionary saving in that increases in income uncertainty are related to increases in aggregate rates of savings.

Keywords: INCOME; UNCERTAINTY; CONSUMPTION (search for similar items in EconPapers)
JEL-codes: E21 D91 (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Consumption Adjustment under Changing Income Uncertainty (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fth:aunaec:345

Access Statistics for this paper

More papers in Working Papers from Australian National University - Department of Economics
Address: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().