@techreport{NBERw4516,
 title = "The Importance of Precautionary Motives in Explaining Individual and    Aggregate Saving",
 author = "R. Glenn Hubbard and Jonathan Skinner and Stephen P. Zeldes",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4516",
 year = "1994",
 month = "November",
 URL = "http://www.nber.org/papers/w4516",
 abstract = {This paper examines predictions of a life-cycle simulation model -- in which individuals face uncertainty regarding their length of life, earnings, and out-of-pocket medical expenditures, and imperfect insurance and lending markets -- for individual and aggregate wealth accumulation.  Relative to life-cycle or buffer-stock alternatives, our augmented life-cycle model better matches a variety of features of U.S. data, including: (1) aggregate wealth, (2) cross-sectional differences in wealth-age and consumption-age profiles by education group, and (3) short-run time-series co-movements of consumption and income.},
}