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Tomoki Kitamura, Yasuhiro Yonezawa and Munenori Nakasato
''Saving Behavior under the Influence of Income Risk: An Experimental Study ''
( 2010, Vol. 30 No.2 )
Individual subjects are experimentally tested for precautionary saving. We use a simplified experimental framework and decision supporting tool to show that subject's consumption is consistent with precautionary saving. We find that subjects overact in changing current income. However, those over-reactions cancel each other, and subject's consumption behavior is close to the optimal solutions on average.
Keywords: Precautionary Saving, Experiment
JEL: D1 - Household Behavior: General
Manuscript Received : Mar 04 2010 Manuscript Accepted : Apr 01 2010

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