| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062414 | Economics Letters | 2007 | 6 Pages |
Abstract
Extending Dynan's methodology [Dynan, K., 1993. How prudent are consumers? Journal of Political Economy 101, 1104-1113], we show that a significant fraction of the prudence parameter puzzle can be explained by a downward omitted-variable bias. Further, the estimated prudence is substantially higher for liquidity-constrained households.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jeong-Joon Lee, Yasuyuki Sawada,