05713oam 22013934 450 991096823220332120250426110910.09781475518870147551887097814755706941475570694(CKB)2550000000106446(EBL)1606753(SSID)ssj0000944116(PQKBManifestationID)11595730(PQKBTitleCode)TC0000944116(PQKBWorkID)10982532(PQKB)10754404(Au-PeEL)EBL1606753(CaPaEBR)ebr10569530(OCoLC)870244916(IMF)WPIEE2012134(IMF)WPIEA2012134(MiAaPQ)EBC1606753WPIEA2012134(EXLCZ)99255000000010644620020129d2012 uf 0engur|n|---|||||txtccrThe Volatility Trap : Precautionary Saving, Investment, and Aggregate Risk /Reda Cherif, Fuad Hasanov1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (23 p.)IMF Working PapersDescription based upon print version of record.9781475599558 1475599552 9781475503869 1475503865 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 function of the volatility of permanent shocks, as predicted by the model.IMF Working Papers; Working Paper ;No. 2012/134RiskSaving and investmentAggregate Factor Income DistributionimfAgricultural commoditiesimfAgriculture: GeneralimfBalance of paymentsimfCapacityimfCapitalimfCommoditiesimfCurrent Account AdjustmentimfCurrent account surplusesimfEconomic Growth and Aggregate Productivity: GeneralimfExports and ImportsimfFarm produceimfIncome shocksimfIncomeimfIntangible CapitalimfInternational economicsimfIntertemporal Consumer ChoiceimfInvestment & securitiesimfInvestmentimfInvestments: CommoditiesimfLife Cycle Models and SavingimfMacroeconomicsimfMacroeconomics: ConsumptionimfNational accountsimfPrecautionary savingsimfSaving and investmentimfSavingimfShort-term Capital MovementsimfWealthimfUnited StatesimfRisk.Saving and investment.Aggregate Factor Income DistributionAgricultural commoditiesAgriculture: GeneralBalance of paymentsCapacityCapitalCommoditiesCurrent Account AdjustmentCurrent account surplusesEconomic Growth and Aggregate Productivity: GeneralExports and ImportsFarm produceIncome shocksIncomeIntangible CapitalInternational economicsIntertemporal Consumer ChoiceInvestment & securitiesInvestmentInvestments: CommoditiesLife Cycle Models and SavingMacroeconomicsMacroeconomics: ConsumptionNational accountsPrecautionary savingsSaving and investmentSavingShort-term Capital MovementsWealth332.152Cherif Reda1815744Hasanov Fuad1595841International Monetary Fund.DcWaIMFBOOK9910968232203321The Volatility Trap4372531UNINA