Abstract—Not properly accounting for differences between business owners and nonbusiness owners in studies of household wealth can lead to erroneous conclusions about the significance of different saving motives. Using data from the Panel Study of Income Dynamics from the 1980s and 1990s, we show that within samples of both business owners and non–business owners, the amount of precautionary savings with respect to labor income risk is modest and accounts for less than 10% of total household wealth. Previous large estimates of the size of precautionary balances resulted from pooling these two groups together. Such pooling is inappropriate given that business owners face higher labor risk and accumulate more wealth than non–business owners for reasons unrelated to precautionary motives.
Thursday, February 4, 2010
I just found out that my paper (with co-authors E. Hurst, A. Lusardi, and A. Kennickell) got published!!
Subscribe to: Post Comments (Atom)
Well done, Francisco!
First publication is always exiting.
By the way, my name is Michael Yali. I'm an economist from Ukraine. My first publication in 2007 gave me a start of priceless experience and unforgettable feelings. So, I'm very glad for you :)
I've been reading your blog for some time and decided to add your blog link to my blogroll. Here is my blog www.marketzz.com Your link is already there.
The traffic isn't so big, but Marketzz.com has well-educated audience of loyal ukrainan readers. By the way, I've found you on economistsview.typepad.com, who linked my blog a few years ago, and I will be very happy to find my link on your's :) So, it would be nice to exchange links. Good luck!
Post a Comment