⁹A new paper by Challe and Ragot (2012) calibrates a quantitative model with aggregate and idiosyncratic uncertainty and time-varying precautionary saving, and documents that the model can produce a plausible response of consumption to aggregate shocks.
Alan, Crossley, and Low (2012) simulate a model with idiosyncratic uncertainty and find that the rise of the saving rate in the recessions is driven by increase in uncertainty rather than tightening of credit.