NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Arthur Kennickell

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

January 2014Drowning or Weathering the Storm? Changes in Family Finances from 2007 to 2009
with Jesse Bricker, Brian Bucks, Traci Mach, Kevin Moore
in Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, Charles Hulten and Marshall Reinsdorf, editors
In 2009, the Federal Reserve Board implemented a survey of families that participated in the 2007 Survey of Consumer Finances (SCF) to gain detailed information on the effects of the recent recession on all types of households. Using data from the 2007–09 SCF panel, we highlight the variation in households’ financial experiences by examining the distribution of changes in families’ balance sheets. Further, we use information on changes in families’ saving, investing, and spending behavior to consider the potential longer-term consequences of the current recession on households’ finances and decisions. Most families experienced a decline in wealth between 2007 and 2009, but many families saw only small changes on net, and others saw substantial increases in their wealth. This pattern of gai...
April 2011Drowning or Weathering the Storm? Changes in Family Finances from 2007 to 2009
with Jesse Bricker, Brian K. Bucks, Traci L. Mach, Kevin Moore: w16985
In 2009, the Federal Reserve Board implemented a survey of families that participated in the 2007 Survey of Consumer Finances (SCF) to gain detailed information on the effects of the recent recession on all types of households. Using data from the 2007–09 SCF panel, we highlight the variation in households’ financial experiences by examining the distribution of changes in families’ balance sheets. Further, we use information on changes in families’ saving, investing, and spending behavior to consider the potential longer-term consequences of the current recession on households’ finances and decisions. Most families experienced a decline in wealth between 2007 and 2009, but many families saw only small changes on net, and others saw substantial increases in their wealth. This pattern o...

Forthcoming: Drowning or Weathering the Storm? Changes in Family Finances from 2007 to 2009, Jesse Bricker, Brian Bucks, Arthur Kennickell, Traci Mach, Kevin Moore. in Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, Hulten and Reinsdorf. 2014

November 2005Precautionary Savings and the Importance of Business Owners
with Erik Hurst, Annamaria Lusardi, Francisco Torralba: w11731
In this paper, we show the pivotal role business owners play in estimating the importance of the precautionary saving motive. Since business owners hold larger amounts of wealth than other households for non-precautionary reasons and also face highly volatile income, they induce a correlation between wealth and income risk regardless of whether or not a precautionary saving motive exists. Using data from the Panel Study of Income Dynamics in the 1980s and the 1990s, we show that among both business owners and non-business owners, the size of precautionary savings with respect to labor income risk is modest and accounts for less than ten percent of total household wealth. However, pooling together the two groups leads to an artificially high estimate of the importance of precautionary savin...
November 2004Disentangling the Importance of the Precautionary Saving Mode
with Annamaria Lusardi: w10888
We assess the importance of the precautionary saving motive by relying on a direct question about precautionary wealth from the 1995 and 1998 waves of the Survey of Consumer Finances. In this survey, a new question has been designed to elicit the amount of desired precautionary wealth. This allows us to bound the amount of precautionary accumulation and to overcome many of the problems of previous works on this topic. We find that a precautionary saving motive exists and affects virtually every type of household. Even though this motive does not give rise to large amounts of wealth for young and middle-age households, it is particularly important for two groups: older households and business owners. Overall, we provide strong evidence that we need to take the precautionary saving motive in...

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us