Search Results
Author: Lee, Seung Myung
Resulting in 1 citation.
| 1. |
Lee, Seung Myung |
|
A Study of Liquidity Constraints and Precautionary Savings: Micro Evidence for the Young Ph.D. Dissertation, The Ohio State University, 1995 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Household Income; Mothers, Behavior; Savings Inspired by the works of Dynan (JPE, 1993) and Hayashi (QJE, 1985), this dissertation tests for precautionary savings and liquidity constraints for young households using data from the 1985-88 National Longitudinal Survey of Youth. It tests for precautionary savings associated with the variance of consumption growth spanning several years and provides an explicit measure of the strength of precautionary saving motives, the coefficient of relative prudence. Two-stage least squares estimation yields a significantly positive, but small, estimate of relative prudence, indicating a small precautionary saving motive for young households. The presence of liquidity constraints does not appear to explain the failure to estimate a substantial precautionary saving effect for young households. A reduced-form equation for consumption is estimated on high saving households by the Tobit procedure to get predicted desired consumption without liquidity constraints. The gap between predicted desired consumption and measured consumption is not evident for young households, reflecting the insignificance of liquidity constraints. |
|
|
Bibliography Citation
Lee, Seung Myung. A Study of Liquidity Constraints and Precautionary Savings: Micro Evidence for the Young. Ph.D. Dissertation, The Ohio State University, 1995. |