Earnings uncertainty and precautionary saving Guiso, Luigi

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Guiso, Luigi
Appears In
Journal of Monetary Economics
Saving and investment.; Uncertainty -- Economic aspects; Savings -- Economic aspects
Academic; Trade
A study was conducted to examine earnings uncertainty and precautionary saving. The study was based on data from the 1989 Italian Survey of Household Income and Wealth. Results show that relationship between uncertainty and wealth accumulation supplement the precautionary saving theory. However, only minimal explanation for savings is developed. The results imply the influence of other factors, such as health andmortality risks, in determining wealth holdings.
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