Income Uncertainty and Self-Reported Precautionary Wealth: Evidence from the Japanese Micro Data

SummaryThis paper uses microdata from the German Socio-Economic Panel Study (GSOEP) to analyse the importance of precautionary saving under income uncertainty. In a cross-section of households, wealth in 2002 is regressed on alternative measures of income uncertainty. In addition to the usual controls, risk aversion is also taken into account. When using net financial wealth, precautionary saving is statistically significant and economically quite important. Precautionary net financial wealth is estimated to make up, on average, around 20% of total aggregate net financial wealth. Unlike net financial wealth, housing wealth is not used as a buffer stock against income uncertainty, the most likely reason being its illiquidity in Germany. Not controlling for risk aversion leads to an overestimation of precautionary wealth. This result contradicts the findings of Fuchs-Schündeln and Schündeln (2005) who suggest that, owing to self-selection, not controlling for risk aversion results in a significant reduction in aggregate precautionary wealth holdings.

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Precautionary Wealth and Income Uncertainty: A Household-Level Analysis

Journal of Applied Economics ◽

10.1016/s1514-0326(12)60015-4 ◽

2012 ◽

Vol 15 (2) ◽

pp. 353-369 ◽

Cited By ~ 2

Author(s):

Ashok K. Mishra ◽

Hiroki Uematsu ◽

Rebekah R. Powell

Keyword(s):

Household Level ◽

Income Uncertainty ◽

Level Analysis ◽

Precautionary Wealth

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Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

Light & Engineering ◽

10.33383/2018-123 ◽

2018 ◽

pp. 111-116 ◽

Cited By ~ 1

Author(s):

Gang AN ◽

Hang WANG

Keyword(s):

Fiscal Policy ◽

Research And Development ◽

Operating Performance ◽

Fiscal Policies ◽

Micro Data ◽

Policy Effect ◽

Policy Suggestions ◽

Asset Size ◽

The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

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