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Empirical Analysis of Household Savings Decisions in Context of Uncertainty: A cross-sectional approach

Author

Listed:
  • Paolo Lucchino
  • Dr Justin van de Ven
Abstract
Most empirical studies of savings behaviour that explicitly take account of the in?uence of uncertainty consider for identi?cation data that describe the evolution of circumstances observed during an appreciable period of the life-course. Here we report results obtained for a dynamic programming model that has been adapted to permit identi?cation of preference parameters using data observed at a point in time for a given population cross-section. We discuss the advantages of this approach, and our empirical results demonstrate its feasibility in context of contemporary computing technology.

Suggested Citation

  • Paolo Lucchino & Dr Justin van de Ven, 2013. "Empirical Analysis of Household Savings Decisions in Context of Uncertainty: A cross-sectional approach," National Institute of Economic and Social Research (NIESR) Discussion Papers 406, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:406
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    References listed on IDEAS

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    Cited by:

    1. Dr Justin van de Ven, 2013. "The influence of decision costs on investments in Individual Savings Accounts," National Institute of Economic and Social Research (NIESR) Discussion Papers 407, National Institute of Economic and Social Research.
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    3. Berk Yavuzoglu, 2018. "Labor Force Attachment Beyond Normal Retirement Age," Working Papers 1803, Nazarbayev University, Department of Economics, revised Nov 2018.
    4. Justin van de Ven, 2013. "The Influence of Decision Costs on Investments in Indivudual Savings Accounts," Melbourne Institute Working Paper Series wp2013n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Paolo Lucchino & Dr Justin van de Ven, 2013. "Empirical Analysis of Household Savings Decisions in Context of Uncertainty: A cross-sectional approach," National Institute of Economic and Social Research (NIESR) Discussion Papers 417, National Institute of Economic and Social Research.

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    More about this item

    Keywords

    Dynamic Programming; Savings; Labor Supply;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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