Abstracts » Economics

Understanding why high income households save more than low income households

Article Abstract:

A life-cycle model is used to assees the savings behavior of households with high incomes in the US.

Economic aspects, Savings, Households

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Aggregate precautionary savings: When is the third derivative irrelevant?

Article Abstract:

The question of when aggregate precautionary savings are positive is considered in terms of a general equilibrium model.

Macroeconomics

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The one-sector growth model with idiosyncratic shocks: steady states and dynamics

Article Abstract:

The steady state and dynamic properties of the one-sector model of growth with complete markets do not measure up in terms of their ability to withstand increases in idiosyncratic, uninsurable shocks and borrowing constraints. Results reveal that the capital stock in steady state is constantly greater than the steady-state capital shock in the complete markets economy. Capital stock is also shown to increase monotonically if the capital stock is lesser than the state of the model economy without idiosyncratic shocks. It was also observed that non-monotonic dynamics can exist near a steady state.

Models, Economic development, Business cycles, Equilibrium (Economics), Capital

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