01878cas a2200265 a 4500 AALejournalIMF011678 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463936433 1018-5941 BD-DhAAL BD-DhAAL Mody, Ashoka. Precautionary Savings in the Great Recession / Ashoka Mody, Damiano Sandri, Franziska Ohnsorge. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Heightened uncertainty since the onset of the Great Recession has materially increased saving rates, contributing to lower consumption and GDP growth. Consistent with a model of precautionary savings in the face of uncertainty, we find for a panel of advanced economies that greater labor income uncertainty is significantly associated with higher household savings. These results are robust to controlling for other determinants of saving rates, including wealth-to-income ratios, the government fiscal balance, demographics, credit conditions, and global growth and financial stress. Our estimates imply that at least two-fifths of the sharp increase in household saving rates between 2007 and 2009 can be attributed to the precautionary savings motive. Mode of access: Internet Ohnsorge, Franziska. Sandri, Damiano. IMF Working Papers; Working Paper ; No. 2012/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/042/001.2012.issue-042-en.xml IMF e-Library