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Household Saving and The Rate of Interest

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  • SAM OULIARIS

Abstract

This paper examines the relationship between the post‐tax real interest rate and the Australian household saving ratio at the empirical level. Using alternative models of the consumption‐saving decision and different estimation periods, it is shown that the post‐tax real interest rate exerts a significant negative influence on the saving ratio. The estimates, therefore, imply that the fall in post‐tax real interest rates during the 1970s contributed to the rise in the Australian saving ratio.

Suggested Citation

  • Sam Ouliaris, 1981. "Household Saving and The Rate of Interest," The Economic Record, The Economic Society of Australia, vol. 57(3), pages 205-214, September.
    • Handle: RePEc:bla:ecorec:v:57:y:1981:i:3:p:205-214
    DOI: 10.1111/j.1475-4932.1981.tb01054.x
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    References listed on IDEAS

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    Cited by:

    1. Cameron, Trudy Ann, 1986. "Permanent and transitory income in models of housing demand," Journal of Urban Economics, Elsevier, vol. 20(2), pages 205-210, September.
    2. Goh, Soo Khoon & McNown, Robert & Wong, Koi Nyen, 2020. "Macroeconomic implications of population aging: Evidence from Japan," Journal of Asian Economics, Elsevier, vol. 68(C).
    3. Gulnur MURADOGLU & Fatma TASKIN, 1996. "Differences In Household Savings Behavior: Evidence From Industrial And Developing Countries," The Developing Economies, Institute of Developing Economies, vol. 34(2), pages 138-153, June.

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