Uninsured Idiosyncratic Risk and Aggregate Saving

1994-08-01articleThe Quarterly Journal of Economics2,799 citationsgold

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Economic theories and models Financial Literacy, Pension, Retirement Analysis Economic Theory and Policy

Abstract

We present a qualitative and quantitative analysis of the standard growth model modified to include precautionary saving motives and liquidity constraints. We address the impact on the aggregate saving rate, the importance of asset trading to individuals, and the relative inequality of wealth and income distributions.

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References

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