Younger Households Saving: Evidence From Japan and Italy
Albert Ando, Luigi Guiso, Daniele Terlizzese, Daniel Dorsainvil
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.
Document Object Identifier (DOI): 10.3386/w3871
Published: Scandinavian Journal of Economics, Vol. 2, (1991).