Theoretical foundations of buffer stock saving

Christopher Carroll

No 2011/15, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: Buffer-stock models of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main features of such models, including the existence of a target wealth ratio and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock savers.

Keywords: Precautionary Saving; Buffer Stock Saving; Marginal Propensity to Consume; Permanent Income Hypothesis (search for similar items in EconPapers)
JEL-codes: D81 D91 E21 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (16)

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https://www.econstor.eu/bitstream/10419/57365/1/665471742.pdf (application/pdf)

Related works:
Working Paper: Theoretical Foundations of Buffer Stock Saving (2009)
Working Paper: Theoretical Foundations of Buffer Stock Saving (2004)
Working Paper: Theoretical Foundations of Buffer Stock Saving (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:201115

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