The spirit of capitalism and savings behavior
AbstractThis paper presents a capitalist-spirit model of savings by including wealth in the intertemporal utility function. While this model includes the life-cycle model and bequest model as two special cases, it sheds light on why wealth holding has tended to increase with age, why decumulation of wealth after retirement has not happened, and why households with and without children have not shown significant differences in their savings behavior. The capitalist-spirit approach is especially useful for understanding savings by the rich and savings across countries and over time.
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Bibliographic InfoPaper provided by China Economics and Management Academy, Central University of Finance and Economics in its series CEMA Working Papers with number 79.
Length: 13 pages
Date of creation: 1995
Date of revision:
Publication status: Published in Journal of Economic Behavior & Organization, Volume 28, Issue 1, September 1995, Pages 131-143
Savings puzzle; Capitalist spirit; Wealth accumulation;
Other versions of this item:
- E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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