It takes the average reader and 21 minutes to read The Volatility Trap by Reda Cherif
Assuming a reading speed of 250 words per minute. Learn more
We study the effects of permanent and temporary income shocks on precautionary saving and investment in a "store-or-sow" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a "volatility trap." Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical evidence shows a nonlinear relationship between investment and saving and that investment is a hump-shaped function of the volatility of permanent shocks, as predicted by the model.
The Volatility Trap by Reda Cherif is 21 pages long, and a total of 5,271 words.
This makes it 7% the length of the average book. It also has 6% more words than the average book.
The average oral reading speed is 183 words per minute. This means it takes and 28 minutes to read The Volatility Trap aloud.
The Volatility Trap is suitable for students ages 8 and up.
Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.
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