Piggy banks
Subtitle: financial intermediaries as a commitment to save
By: Donald P. Morgan and Katherine A. Samolyk.
Contributors: Samolyk, Katherine A.; Federal Reserve Bank of New York.
Series: Staff reports ;; no. 50; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 50.
Publisher: Federal Reserve Bank of New York
Published: 1998
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Saving and investment -- Mathematical models.; Financial institutions -- Investments -- Mathematical models.
Description: "Savers with uncertain life spans cannot stick to long-term investment plans when they invest directly in liquid assets.  Before horizons are known, all savers will plan to roll over their short-term assets if returns turn out high.  Ex post, the short-term investors will consume their liquid assets rather than reinvest them.  Delegating investment decisions to an intermediary reduces the commitment problem, and leads to more efficient portfolios.  The higher return to savings should also increase savings rates"--Federal Reserve Bank of New York web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/3/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.