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http://hdl.handle.net/10016/4933
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| Title: | Precautionary Savings and Wealth Distribution under Habit Formation Preferences |
| Author(s): | Díaz, Antonia [andiaz]
Pijoan-Mas, Josep
Ríos-Rull, José Víctor |
| Publisher: | Elsevier |
| Issued date: | Sep-2003 |
| Citation: | Journal of Monetary Economics. (Septiember, 2003), vol. 50, nº 6, p. 1257-1291 |
| URI: | http://hdl.handle.net/10016/4933 |
| ISSN: | 0304-3932 |
| DOI: | 10.1016/S0304-3932(03)00078-3 |
| Abstract: | We study the role of habit formation in shaping the amount of precautionary savings and the wealth distribution in heterogeneous agents model economies with idiosyncratic uncertainty. We adjust preferences to equate the Intertemporal Elasticity of Substitution in all model economies. We find that habit formation brings a hefty increase in precautionary savings and very mild reductions in the coefficient of variation and in the Gini index of wealth. These findings hold for both persistent and non-persistent habits, with the effects of the former being much larger. |
| Review: | PeerReviewed |
| Publisher version: | http://dx.doi.org/10.1016/S0304-3932(03)00078-3 |
| Keywords: | Habit formation
Precautionary savng
Wealth distribution |
| Rights: | ©Elsevier |
| Appears in Collections: | DE - Artículos de Revistas
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