Younger Households Saving: Evidence from Japan and Italy
26 Pages Posted: 11 Feb 2001 Last revised: 30 Jan 2021
Date Written: October 1991
Both young and old consumers appear to dissave too little for their behaviour to be consistent with a strict life cycle model. We concentrate on young households and document their behaviour drawing from Italian and Japanese data. We also provide a theoretical set-up which can account for the observed fact without relying on assumptions about the working of credit markets or the degree of foresight of consumers.
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