A Test for the Presence of Precautionary Saving under Regime Changes in Aggregate Income

We test the presence of precautionary saving using aggregate time series data. Our measure of the expected variance of aggregate labor income is constructed from the Markov-switching model allowing for regime changes in labor income growth. A simple empirical test for the Euler equation using quarterly Korean data provides little evidence for the existence of precautionary motive for saving.
Publisher
한국계량경제학회
Issue Date
2000-12
Language
KOR
Citation

JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS, v.6, no.2, pp.25 - 32

ISSN
1229-2893
URI
http://hdl.handle.net/10203/3681
Appears in Collection
KGSF-Journal Papers(저널논문)
Files in This Item
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