The Vanishing Savings Motive
Journal
Journal of Economics
ISSN
0931-8658
Type
journal article
Date Issued
1994-01-01
Author(s)
Abstract
The overlapping generations model with life-time uncertainty is capable of generating unfamiliar, nonmonotonic adjustment phenomena that are attributed to a transitory savings motive. Slowly falling (increasing) wages create transitory savings disincentives which vanish in the long run when wage profiles become stationary again. Such a transitory savings component comes on top of a base component created by the permanently operating long-run savings incentives, and it easily gives rise to overshooting adjustment. Assets and consumption may even move first in a direction opposite to the implied long-run changes.
Language
English
Keywords
Wage rates
uncertainty
studies
savings
policy making
impact analysis
economic theory economic policy
economic models.
HSG Classification
not classified
Refereed
No
Publisher
Springer Dordrecht
Publisher place
Dordrecht /NL
Volume
60
Number
2
Start page
189
End page
197
Pages
9
Subject(s)
Eprints ID
21980