Can Buffer Stock Saving Explain the Smoothness and Excess Sensitivity of Consumption?

2000 ◽  
Author(s):  
Sydney C. Ludvigson ◽  
Alexander Michaelides
Keyword(s):  
Buffer Stock ◽  
Excess Sensitivity

The Self-Constrained Hand-to-Mouth

2021 ◽  
pp. 1-45
Author(s):  
Michael Gelman
Keyword(s):  
High Frequency ◽  
Liquidity Constraints ◽  
Exponential Model ◽  
Personal Finance ◽  
Buffer Stock ◽  
The Self ◽  
Proximate Cause ◽  
Ultimate Cause ◽  
Stock Model ◽  
Excess Sensitivity

Abstract Many studies have shown that consumption responds to the arrival of predictable income (excess sensitivity). This paper uses a buffer stock model of consumption to understand what causes excess sensitivity and to test which parametrization is consistent with empirical excess sensitivity estimates. Using high frequency granular data from a personal finance app, it finds that while liquidity constraints are a proximate cause, preferences are the ultimate cause of excess sensitivity. Furthermore, it finds that for feasible parameters, a quasi hyperbolic version of the model is more consistent with the level of excess sensitivity relative to a standard exponential model.

Does Buffer-Stock Saving Explain the Smoothness and Excess Sensitivity of Consumption?

2001 ◽  
Vol 91 (3) ◽  
pp. 631-647 ◽  
Author(s):  
Sydney C Ludvigson ◽  
Alexander Michaelides
Keyword(s):  
Buffer Stock ◽  
Excess Sensitivity

scholarly journals Buffer Stock Operations and Well-Being: The Case of Smallholder Farmers in Ghana

2021 ◽  
Author(s):  
Emmanuel Abokyi ◽  
Dirk Strijker ◽  
Kofi Fred Asiedu ◽  
Michiel N. Daams
Keyword(s):  
Stock Price ◽  
Smallholder Farmers ◽  
Well Being ◽  
Buffer Stock ◽  
Least Square ◽  
Subjective Well Being ◽  
Stabilization Policy ◽  
Environmental Aspects ◽  
Policy Makers ◽  
Aid Policy

AbstractThis study investigates the possible causal relationship between buffer stock operations in Ghanaian agriculture and the well-being of smallholder farmers in a developing world setting. We analyze the differences in the objective and subjective well-being of smallholder farmers who do or do not participate in a buffer stock price stabilization policy initiative, using self-reported assessments of 507 farmers. We adopt a two-stage least square instrumental variable estimation to account for possible endogeneity. Our results provide evidence that participation in buffer stock operations improves the objective and subjective well-being of smallholder farmers by 20% and 15%, respectively. Also, with estimated coefficient of 1.033, we find a significant and robust relationship between objective well-being and subjective well-being among smallholder farmers. This relationship implies that improving objective well-being enhances the subjective well-being of the farmers. We also find that the activities of intermediaries decrease both the objective and subjective well-being of farmers. This study demonstrates that economic, social, and environmental aspects of agricultural life could constitute priorities for public policy in improving well-being, given their strong correlation with the well-being of farmers. Based on the results of this study, we provide a better understanding, which may aid policy-makers, that public buffer stockholding operations policy is a viable tool for improving the well-being of smallholder farmers in a developing country.

scholarly journals The Excess Sensitivity of Layoffs and Quits to Demand

1984 ◽  
Vol 2 (2) ◽  
pp. 233-257 ◽  
Author(s):  
Robert E. Hall ◽  
Edward P. Lazear
Keyword(s):  
Excess Sensitivity

DISEQUILIBRIUM BUFFER STOCK MODELS: A SURVEY

1988 ◽  
Vol 2 (3) ◽  
pp. 187-208 ◽  
Author(s):  
Ross Milbourne
Keyword(s):  
Buffer Stock
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