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S. Rao Aiyagari, Uninsured Idiosyncratic Risk and Aggregate Saving, The Quarterly Journal of Economics, Volume 109, Issue 3, August 1994, Pages 659–684, https://doi.org/10.2307/2118417
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Abstract
We present a qualitative and quantitative analysis of the standard growth model modified to include precautionary saving motives and liquidity constraints. We address the impact on the aggregate saving rate, the importance of asset trading to individuals, and the relative inequality of wealth and income distributions.
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© 1994 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
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