Skip to main content

Advertisement

Log in

Testing the intertemporal substitution hypothesis: The impact of income uncertainty on savings

  • Shorter Papers & Comments
  • Published:
Review of World Economics Aims and scope Submit manuscript

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  • Alogoskoufis, G. S. (1987a). Aggregate Employment and Intertemporal Substitution in the UK.Economic Journal 97: 403–415.

    Article  Google Scholar 

  • Alogoskoufis, G. S. (1987b). On Intertemporal Substitution and Aggregate Labour Supply.Journal of Political Economy 95: 938–960.

    Article  Google Scholar 

  • Antzoulatos, A. A. (1994). Borrowing Constraints, Income Expectations and the Euler Equation: Theory and Evidence.Economics Letters 45: 323–327.

    Article  Google Scholar 

  • Blanchard, O., and N. G. Mankiw (1988). Consumption: Beyond Certainty Equivalence.American Economic Review, Papers and Proceedings 78: 173–177.

    Google Scholar 

  • Caballero, R. J. (1990). Consumption Puzzles and Precautionary Savings.Journal of Monetary Economics 25: 113–136.

    Article  Google Scholar 

  • Campbell, J. Y., and A. Deaton (1989). Why is Consumption So Smooth?Review of Economic Studies 56 (3): 357–374.

    Article  Google Scholar 

  • Carroll, C. D. (1992). The Buffer-Stock Theory of Saving: Some Macroeconomic Evidence.Brookings Papers on Economic Activity (2): 61–135.

  • Carroll, C. D. (1994). How Does Future Income Affect Current Consumption?Quarterly Journal of Economics 109: 111–147.

    Article  Google Scholar 

  • Carroll, C. D., and A. A. Samwick (1998). How Important Is Precautionary Saving?Review of Economics and Statistics 80: 410–419.

    Article  Google Scholar 

  • Clark, K. B., and L. H. Summers (1982). Labour Force Participation: Timing and Persistence.Review of Economic Studies 49 (5) Special issue: 825–844.

    Article  Google Scholar 

  • Dardanoni, V. (1991). Precautionary Savings under Income Uncertainty: A Cross-Sectional Analysis.Applied Economics 23: 153–160.

    Article  Google Scholar 

  • Deaton, A. (1991). Saving and Liquidity Constraints.Econometrica 59 (5): 1221–1248.

    Article  Google Scholar 

  • Dickey, D. A., and W. A. Fuller (1981). Likelihood Ratio Statistics for Autoregressive Time Series With a Unit Root.Econometrica 49: 1057–1072.

    Article  Google Scholar 

  • Drèze, J. H., and F. Modigliani (1972). Consumption Decisions under Uncertainty.Journal of Economic Theory 5: 308–335.

    Article  Google Scholar 

  • Dutkowsky, D. H., and R. M. Dunsky (1996). Intertemporal Substitution, Money, and Aggregate Labour Supply.Journal of Money, Credit, and Banking 28: 216–232.

    Article  Google Scholar 

  • Engle, R. F. (1982). Autoregressive Conditional Heteroskedasticity with Estimates of the Variance of United Kingdom Inflation.Econometrica 50: 987–1007.

    Article  Google Scholar 

  • Evans, P., and G. Karras (1997). International Integration of Capital Markets and the Cross-Country Divergence of Per Capita Consumption.Journal of International Money and Finance 16: 681–697.

    Article  Google Scholar 

  • Flacco, P. R., and R. E. Parker (1992). A Comparison of Two Methods for Estimating Income Uncertainty with an Application to Aggregate Consumption Behaviour.Applied Economics 24: 701–707.

    Article  Google Scholar 

  • Friedman, M. (1957).A Theory of the Consumption Function. Princeton: Princeton University Press.

    Google Scholar 

  • Grossberg, A. J. (1991). Personal Saving under Income Uncertainty: A Test of the Intertemporal Substitution Hypothesis.Eastern Economic Journal 17: 203–210.

    Google Scholar 

  • Guiso, L., T. Jappelli, and D. Terlizzese (1992). Earnings Uncertainty and Precautionary Saving.Journal of Monetary Economics 30: 307–337.

    Article  Google Scholar 

  • Hall, R. E., and F. S. Mishkin (1982). The Sensitivity of Consumption to Transitory Income Estimates from Panel Data on Households.Econometrica 50: 461–481.

    Article  Google Scholar 

  • Keynes, J. M. (1936).The General Theory of Employment, Interest and Money. London: Macmillan.

    Google Scholar 

  • Kimball, M. (1990). Precautionary Saving in the Small and in the Large.Econometrica 58: 53–73.

    Article  Google Scholar 

  • Leland, H. (1968). Saving and Uncertainty: The Precautionary Demand for Saving.Quarterly Journal of Economics 82: 465–473.

    Article  Google Scholar 

  • Mankiw, N. G., and M. D. Shapiro (1985). Trends, Random Walks, and Tests of the Permanent Income Hypothesis.Journal of Monetary Economics 16 (2): 165–175.

    Article  Google Scholar 

  • Sandmo, A. (1970). The Effect of Uncertainty on Saving Decisions.Review of Economic Studies 37: 353–360.

    Article  Google Scholar 

  • Sims, C. (1980). Macroeconomics and Reality.Econometrica 48: 1–48.

    Article  Google Scholar 

  • Skinner, J. (1988). Risky Income, Life-Cycle Consumption, and Precautionary Saving.Journal of Monetary Economics 22: 237–255.

    Article  Google Scholar 

  • Viard, A. D. (1993). The Productivity Slowdown and the Savings Shortfall: A Challenge to the Permanent Income Hypothesis.Economic Inquiry 31: 549–563.

    Article  Google Scholar 

  • West, K. D. (1988). The Insensitivity of Consumption to News about Income.Journal of Monetary Economics 21: 17–33.

    Article  Google Scholar 

Download references

Authors

About this article

Cite this article

Apergis, N., Katrakilidis, C. Testing the intertemporal substitution hypothesis: The impact of income uncertainty on savings. Weltwirtschaftliches Archiv 137, 537–548 (2001). https://doi.org/10.1007/BF02707630

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02707630

Keywords

Navigation