The Volatility Trap : Precautionary Saving, Investment, and Aggregate Risk /

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store-or-sow" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a "volatility trap." Namely,...

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Bibliografiske detaljer
Hovedforfatter: Cherif, Reda
Andre forfattere: Hasanov, Fuad
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2012.
Serier:IMF Working Papers; Working Paper ; No. 2012/134
Online adgang:Full text available on IMF