BufferStockTheory

BufferstockTheory

“This paper builds foundations for rigorous and intuitive understanding of buffer stock' saving models (Bewley (1977)-like models with a wealth target), pairing each theoretical result with quantitative illustrations. After describing conditions under which a consumption function exists, the paper articulates stricter Growth Impatience’ conditions that guarantee alternative forms of stability — either at the population level, or for individual consumers. Together, the numerical tools and analytical results constitute a comprehensive toolkit for understanding buffer stock models.

Details

Authors

Abstract

This paper builds foundations for rigorous and intuitive understanding of 'buffer stock' saving models (Bewley (1977)-like models with a wealth target), pairing each theoretical result with quantitative illustrations. After describing conditions under which a consumption function exists, the paper articulates stricter Growth Impatience' conditions that guarantee alternative forms of stability --- either at the population level, or for individual consumers. Together, the numerical tools and analytical results constitute a comprehensive toolkit for understanding buffer stock models.

Actions

Live Interactive Notebook

This material includes a Jupyter Notebook version. You can directly launch and interact with the Notebook within your browser using MyBinder via the "Launch" button(s) below.

Binder badge logo

Launch Dashboard

This material includes an interactive dashboard. The dashboard is a Jupyter Notebook which utilizes the Voila extension. You can directly launch the dashboard within your browser using MyBinder.

Launch Dashboard

Material Source Code

Econ-ARK materials are open source and available to view and clone from GitHub.

View on GitHub

View Paper

An electronic version of the research paper associated with this material is avaiable to view and download.

View Paper

How to Execute this Notebook (with conda)

Install miniconda on your computer

  1. Open a Terminal (MacOS) or the Anaconda Prompt (Windows)
  2. At a command line, change the working directory to the one where you want to install
    • On MacOS/unix, if you install in the /tmp directory, the repo will disappear at reboot:
    • cd /tmp
  3. git clone https://github.com/econ-ark/BufferStockTheory --recursive
  4. cd BufferStockTheory
  5. conda env create -f ./binder/environment.yml --prefix ./condaenv
    • This creates ./condaenv inside your clone of the repo, containing dependencies.
  6. conda run --prefix ./condaenv pip install jupyterlab
  7. conda run --prefix ./condaenv jupyter-lab

Metadata

Edit metadata

Key Value
cff-version 1.1.0
message For a consumption/saving problem with transitory and permanent shocks and unbounded (CRRA) utility, this paper derives conditions under which a nondegenerate solution exists, and under which a target wealth ratio exists; all results are paired with illustrative numerical solutions.
authors {"family-names"=>"Carroll", "given-names"=>"Christopher D.", "orcid"=>"https://orcid.org/0000-0003-3732-9312"}
date-released
abstract This paper builds foundations for rigorous and intuitive understanding of 'buffer stock' saving models (Bewley (1977)-like models with a wealth target), pairing each theoretical result with quantitative illustrations. After describing conditions under which a consumption function exists, the paper articulates stricter Growth Impatience' conditions that guarantee alternative forms of stability --- either at the population level, or for individual consumers. Together, the numerical tools and analytical results constitute a comprehensive toolkit for understanding buffer stock models.
remark-version 1.0
references {"type"=>"article", "authors"=>[{"family-names"=>"Carroll", "given-names"=>"Christopher D.", "orcid"=>"https://orcid.org/0000-0003-3732-9312"}], "title"=>"Theoretical Foundations of Buffer Stock Saving", "doi"=>"https://doi.org/10.5281/zenodo.4088918"}
repository https://github.com/econ-ark/BufferStockTheory
github_repo_url https://github.com/econ-ark/BufferStockTheory
remark-name BufferStockTheory
title-original-paper Theoretical Foundations of Buffer Stock Saving
notebooks BufferStockTheory.ipynb
dashboards BufferStockTheory-dashboard.ipynb
identifiers-paper {"type"=>"url", "value"=>"https://llorracc.github.io/BufferStockTheory"}
{"type"=>"doi", "value"=>"https://doi.org/10.5281/zenodo.4088918"}
date-published-original-paper
tags REMARK
Reproduction
keywords Consumption
date