Anticipated future consumption
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The research paper tries to study the the choice of the investment avenues made by the individual investors according to the demographic variables like gender, age, income and marital status.
13p murielnguyen 25-06-2020 10 1 Download
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We show that the main testable implication of the buffer stock model is that the covariance between the wealth gap (the difference between actual and target wealth) and consumption is (strongly) positive. Although we focus on Carroll’s version of the buffer stock model, the test applies equally well to Deaton’s case. In Carroll, buffer stock behavior emerges from the tension between impatience, prudence, and the chance of zero earnings. Impatient individuals would like to anticipate consumption, but the chance of zero future earnings generates a demand for wealth.
254p bocapchetnguoi 05-12-2012 55 4 Download