TY  - JOUR
AU  - Carroll,Christopher
TI  - Theoretical Foundations of Buffer Stock Saving
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10867
PY  - 2004
Y2  - November 2004
UR  - http://www.nber.org/papers/w10867
L1  - http://www.nber.org/papers/w10867.pdf
N1  - Author contact info:
Christopher D. Carroll
Department of Economics
Mergenthaler 440
Johns Hopkins University
Baltimore, MD 21218
Tel: 410/516-7602
Fax: 410/516-7600
E-Mail: ccarroll@jhu.edu
AB  - "Buffer-stock" versions of the dynamic stochastic optimizing model of saving are now standard in the consumption literature. This paper builds theoretical foundations for rigorous understanding of the main characteristics of buffer stock models, including the existence of a target level of wealth and the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by buffer stock consumers.
ER  -