LEADER 05530oam 22013094 450 001 9910779225603321 005 20230802005426.0 010 $a1-4755-1887-0 010 $a1-4755-7069-4 035 $a(CKB)2550000000106446 035 $a(EBL)1606753 035 $a(SSID)ssj0000944116 035 $a(PQKBManifestationID)11595730 035 $a(PQKBTitleCode)TC0000944116 035 $a(PQKBWorkID)10982532 035 $a(PQKB)10754404 035 $a(MiAaPQ)EBC1606753 035 $a(Au-PeEL)EBL1606753 035 $a(CaPaEBR)ebr10569530 035 $a(OCoLC)870244916 035 $a(IMF)WPIEE2012134 035 $a(IMF)WPIEA2012134 035 $a(EXLCZ)992550000000106446 100 $a20020129d2012 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 14$aThe Volatility Trap : $ePrecautionary Saving, Investment, and Aggregate Risk /$fReda Cherif, Fuad Hasanov 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2012. 215 $a1 online resource (23 p.) 225 1 $aIMF Working Papers 300 $aDescription based upon print version of record. 311 $a1-4755-9955-2 311 $a1-4755-0386-5 320 $aIncludes bibliographical references. 327 $aCover; 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 Statistics 327 $a5. 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) 330 3 $aWe study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store-or-sow" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a "volatility trap." Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical evidence shows a nonlinear relationship between investment and saving and that investment is a hump-shaped function of the volatility of permanent shocks, as predicted by the model. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2012/134 606 $aRisk 606 $aSaving and investment 606 $aInvestments: Commodities$2imf 606 $aExports and Imports$2imf 606 $aMacroeconomics$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aInvestment$2imf 606 $aCapital$2imf 606 $aIntangible Capital$2imf 606 $aCapacity$2imf 606 $aIntertemporal Consumer Choice$2imf 606 $aLife Cycle Models and Saving$2imf 606 $aEconomic Growth and Aggregate Productivity: General$2imf 606 $aAggregate Factor Income Distribution$2imf 606 $aCurrent Account Adjustment$2imf 606 $aShort-term Capital Movements$2imf 606 $aAgriculture: General$2imf 606 $aInternational economics$2imf 606 $aInvestment & securities$2imf 606 $aPrecautionary savings$2imf 606 $aIncome$2imf 606 $aIncome shocks$2imf 606 $aCurrent account surpluses$2imf 606 $aAgricultural commodities$2imf 606 $aNational accounts$2imf 606 $aBalance of payments$2imf 606 $aCommodities$2imf 606 $aSaving and investment$2imf 606 $aFarm produce$2imf 607 $aUnited States$2imf 615 0$aRisk. 615 0$aSaving and investment. 615 7$aInvestments: Commodities 615 7$aExports and Imports 615 7$aMacroeconomics 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aInvestment 615 7$aCapital 615 7$aIntangible Capital 615 7$aCapacity 615 7$aIntertemporal Consumer Choice 615 7$aLife Cycle Models and Saving 615 7$aEconomic Growth and Aggregate Productivity: General 615 7$aAggregate Factor Income Distribution 615 7$aCurrent Account Adjustment 615 7$aShort-term Capital Movements 615 7$aAgriculture: General 615 7$aInternational economics 615 7$aInvestment & securities 615 7$aPrecautionary savings 615 7$aIncome 615 7$aIncome shocks 615 7$aCurrent account surpluses 615 7$aAgricultural commodities 615 7$aNational accounts 615 7$aBalance of payments 615 7$aCommodities 615 7$aSaving and investment 615 7$aFarm produce 700 $aCherif$b Reda$01485136 701 $aHasanov$b Fuad$01472696 712 02$aInternational Monetary Fund. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910779225603321 996 $aThe Volatility Trap$93762941 997 $aUNINA