PRECAUTIONARY SAVING AND SUBJECTIVE EARNINGS VARIANCE

Authors
LUSARDI A
Citation
A. Lusardi, PRECAUTIONARY SAVING AND SUBJECTIVE EARNINGS VARIANCE, Economics letters, 57(3), 1997, pp. 319-326
Citations number
12
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
57
Issue
3
Year of publication
1997
Pages
319 - 326
Database
ISI
SICI code
0165-1765(1997)57:3<319:PSASEV>2.0.ZU;2-7
Abstract
In this paper, I examine a model of precautionary saving and I show th at the fact that people may insure against income risk makes it diffic ult to evaluate the extent of precautionary accumulation by simply loo king at the relationship between wealth and earnings variance. I also argue that occupations may represent a bad proxy for income risk. (C) 1997 Elsevier Science S.A.