Uninsured Idiosyncratic Risk and Aggregate Saving

19942,828 citationsJournal Article

Authors

S. Rao Aiyagari · Federal Reserve Bank of Minneapolis

Abstract

We present a qualitative and quantitative analysis of the standard growth model modified to include precautionary saving motives and liquidity constraints. We address the impact on the aggregate saving rate, the importance of asset trading to individuals, and the relative inequality of wealth and income distributions.

Topics & Keywords

Economic theories and models Monetary Policy and Economic Impact Economic Theory and Policy

UN Sustainable Development Goals

No poverty

Publication Details

Published in: The Quarterly Journal of Economics

Volume 109, Issue 3, pp. 659-684

DOI: 10.2307/2118417

Field-Weighted Citation Impact: 38.86