[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v106y1996i438p1193-1208.html
   My bibliography  Save this article

Precautionary Saving Motives: An Assessment from UK Time Series of Cross-Sections

Author

Listed:
  • Merrigan, Philip
  • Normandin, Michel
Abstract
This paper gauges the strength of precautionary saving motives by estimating the coefficient of prudence from the U.K. Family Expenditure Survey data set (a time series of cross-sections). The instrumental variables estimates reveal that greater uncertainty systematically leads to larger current savings. Most of these impacts are large enough to be statistically consistent with widely accepted beliefs about attitudes towards risk, so that precautionary saving behavior cannot be refuted. Moreover, the households which are less likely to face liquidity constraints or to share risks are more sensitive to uncertainty. Finally, the households for which the head works in the manufacturing industry are more inclined to self-insure against uncertainty. Copyright 1996 by Royal Economic Society.

Suggested Citation

  • Merrigan, Philip & Normandin, Michel, 1996. "Precautionary Saving Motives: An Assessment from UK Time Series of Cross-Sections," Economic Journal, Royal Economic Society, vol. 106(438), pages 1193-1208, September.
  • Handle: RePEc:ecj:econjl:v:106:y:1996:i:438:p:1193-1208
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199609%29106%3A438%3C1193%3APSMAAF%3E2.0.CO%3B2-H&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:106:y:1996:i:438:p:1193-1208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.