Saving on a Rainy Day, Borrowing for a Rainy Day
Repository DOI
Change log
Authors
Alan, Sule
Crossley, Thomas
Low, Hamish
Abstract
The aim of this paper is to understand what a recession means for individual consumers, and to model in a life-cycle framework how individuals respond to recessions. Our focus is on the sharp increase in savings rates that have been observed in the current and recent recessions. We show empirically that these saving spikes were short-lived and common to all working age groups. We then study life-cycle models in which recessions involve one or more of
Description
Keywords
credit constraints, savings, recessions, uncertainty
Is Part Of
Publisher
Faculty of Economics