03172nam 2200613Ia 450 991045240750332120200520144314.01-4755-1887-01-4755-7069-4(CKB)2550000000106446(EBL)1606753(SSID)ssj0000944116(PQKBManifestationID)11595730(PQKBTitleCode)TC0000944116(PQKBWorkID)10982532(PQKB)10754404(MiAaPQ)EBC1606753(Au-PeEL)EBL1606753(CaPaEBR)ebr10569530(OCoLC)870244916(EXLCZ)99255000000010644620111102d2012 uy 0engur|n|---|||||txtccrVolatility trap[electronic resource] precautionary saving, investment, and aggregate risk /prepared by Reda Cherif and Fuad HasanovWashington, D.C. International Monetary Fundc20121 online resource (23 p.)IMF working paper ;12/134Description based upon print version of record.1-4755-9955-2 1-4755-0386-5 Includes bibliographical references.Cover; Abstract; Contents; Introduction; II. A "Store-or-Sow" Model of Precautionary Saving and Investment; III. Results and Implications; Figures; 1. Precautionary Saving and the Golden Rule Investment Rate; 2. A Phase Diagram of Precautionary Saving and Investment Rates; 3. Precautionary Saving and Investment Rates vs. Volatility of Permanent Shocks; 4. Precautionary Saving and Investment Rates vs. Volatility of Temporary Shocks; IV. An Empirical Relationship Among Investment, Saving, and Volatility; Tables; 1. Saving, Investment, and Volatility: Descriptive Statistics5. Saving vs. Investment6. Saving vs. Investment-Saving Ratio; V. Concluding Remarks; 2. Panel Fixed Effects Regressions; References; Appendix Table. Average Investment, Saving, and Volatility (1970-2008)We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical evidence shows a nonlinear relationship between investment and saving and that investment is a hump-shaped fuIMF Working PapersRiskSaving and investmentElectronic books.Risk.Saving and investment.Cherif Reda882104Hasanov Fuad1978-882105International Monetary Fund.MiAaPQMiAaPQMiAaPQBOOK9910452407503321Volatility trap2094351UNINA