Hidden Bibliographic Details
| Other authors / contributors: | Hasanov, Fuad, 1978- author.
International Monetary Fund. Institute for Capacity Development, issuing body.
|
|---|
| ISBN: | 1475570694
9781475570694
1475503865
9781475503869
9781475503869
|
|---|
| Digital file characteristics: | data file
|
|---|
| Notes: | Title from PDF title page (IMF Web site, viewed June 1, 2012).
"Institute for Capacity Development."
"May 2012."
Includes bibliographical references.
|
|---|
| Summary: | 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, big savers invest relatively little. In contrast, low volatility of permanent shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical evidence shows a nonlinear relationship between investment and saving and that investment is a hump-shaped function of the volatility of permanent shocks, as predicted by the model
|
|---|
| Other form: | Print version: Cherif, Reda. Volatility Trap: Precautionary Saving, Investment, and Aggregate Risk. Washington : International Monetary Fund, ©2012 9781475503869
|
|---|
