DSpace - Tor Vergata >
Facoltà di Economia >
CEIS - Centre for International Studies on Economic Growth >
Quaderni >

Please use this identifier to cite or link to this item: http://hdl.handle.net/2108/176

Full metadata record

DC FieldValueLanguage
contributor.authorAtella, Vincenzo-
contributor.authorRosati, Furio C.-
contributor.authorRossi, Maria C.-
description.abstractIn this paper we analyse the importance of precautionary saving in Italy. In contrast to previous studies, we focus on two contemporaneous sources of uncertainty, income and health expenditures, to explain the presence of precautionary saving. The major changes occurred in public health care policies from 1985 to 1996 have caused households to pay a larger share of their out-of-the-pocket medical expenditures. These events have caused households to face both a higher expected mean and a larger variance of health expenditures. Moreover, the economic recession occurred in the early ‘90s and the Maastricht requirements led to general worsening of future expectations of income. We therefore expect consumers to react to this uncertainty by generating precautionary saving. We test this prediction using an Euler equation augmented with the presence of the variance of income and health expenditure shocks. By using a time series of cross sections from the ISTAT household budget survey, we find strong support for precautionary saving as a response to health uncertainty.en
format.extent48547 bytes-
relation.ispartofseriesQuaderni CEIS; 159-
subjectprecautionary savingen
subjectEuler equationen
subjecthealth risk,en
subjectItalian economyen
titlePrecautionary saving and health risk evidence from the Italian households using a time series of cross sectionsen
Appears in Collections:Quaderni

Files in This Item:

File Description SizeFormat
159.pdf47KbAdobe PDFView/Open

Show simple item record

All items in DSpace are protected by copyright, with all rights reserved.