Expectations and Saving Behavior: An Empirical Analysis
AbstractIn this paper we analyze the impact of the expectations about future labor income on thesaving behavior of German households. We measure expectations on an individual basisinstead of generalized risk measures as it is common in existing studies. We use aunique panel data set on household savings. We find that that a higher unemploymentexpectation significantly decreases savings. However, we are not able to identify asignificant relationship between general future income expectations and savings. Moreover,we find that good health expectations increase savings in Western Germany, butdecrease the savings in Eastern Germany.
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Bibliographic InfoPaper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 128.
Date of creation: 2012
Date of revision:
Income expectations; unemployment expectations; health expectations; saving behavior; savings;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D14 - Microeconomics - - Household Behavior - - - Personal Finance
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
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