The Vanishing Savings Motive

Item Type Journal paper
Abstract

The overlapping generations model with life-time uncertainty is capable of generating unfamiliar, nonmonotonic adjustment phenomena that are attributed to a transitory savings motive. Slowly falling (increasing) wages create transitory savings disincentives which vanish in the long run when wage profiles become stationary again. Such a transitory savings component comes on top of a base component created by the permanently operating long-run savings incentives, and it easily gives rise to overshooting adjustment. Assets and consumption may even move first in a direction opposite to the implied long-run changes.

Authors Keuschnigg, Christian
Journal or Publication Title Journal of Economics
Language English
Keywords Wage rates, uncertainty, studies, savings, policy making, impact analysis, economic theory economic policy, economic models.
Subjects other research area
HSG Classification not classified
Refereed No
Date 1 January 1994
Publisher Springer Dordrecht
Place of Publication Dordrecht /NL
Volume 60
Number 2
Page Range 189-197
Number of Pages 9
ISSN 0931-8658
Depositing User Prof. Dr. Christian Keuschnigg
Date Deposited 11 Jan 2006 17:56
Last Modified 23 Aug 2016 10:59
URI: https://www.alexandria.unisg.ch/publications/21980

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Citation

Keuschnigg, Christian (1994) The Vanishing Savings Motive. Journal of Economics, 60 (2). 189-197. ISSN 0931-8658

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https://www.alexandria.unisg.ch/id/eprint/21980
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