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Household Composition and Savings: An Overview

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Author Info
Felix Freyland (Mannheim Research Institute for the Economics of Aging (MEA))
Abstract

In recent years the literature on household saving behavior has been enriched by a number of contributions focusing on the problem of modelling a household as a single decision unit. It has reasonably been argued that with respect to household consumption and saving behavior the simple approach of modelling households as one representative decider could involve major mistakes. Thus the literature has enriched the basic model by incorporating variables that describe the composition of a household examples being the number and age of children, household member’s life expectancies and the intrahousehold distribution of income. This paper reviews these developments and empirical results in the latest literature, with a particular focus on intra-household income distributions.

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Paper provided by Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim in its series MEA discussion paper series with number 05087.

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Date of creation: 30 Jun 2005
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Handle: RePEc:mea:meawpa:05087

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  1. Martin Browning & Annamaria Lusardi, 1995. "Household Saving: Micro Theories and Micro Facts," Department of Economics Working Papers 1995-02, McMaster University. [Downloadable!]
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  2. Martin Browning & Mette Ejrnæs, 2002. "Consumption and Children," CAM Working Papers 2002-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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  3. Browning, Martin, 1995. "Saving and the intra-household distribution of income: an empirical investigation," Ricerche Economiche, Elsevier, vol. 49(3), pages 277-292, September. [Downloadable!] (restricted)
  4. Browning, Martin, 2000. " The Saving Behaviour of a Two-Person Household," Scandinavian Journal of Economics, Blackwell Publishing, vol. 102(2), pages 235-51, June. [Downloadable!] (restricted)
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  5. Kotlikoff, Laurence J & Spivak, Avia, 1981. "The Family as an Incomplete Annuities Market," Journal of Political Economy, University of Chicago Press, vol. 89(2), pages 372-91, April. [Downloadable!] (restricted)
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  6. Shelly J. Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Working Papers wp004, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
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  7. Bourguignon, Francois & Chiappori, Pierre-Andre, 1992. "Collective models of household behavior : An introduction," European Economic Review, Elsevier, vol. 36(2-3), pages 355-364, April. [Downloadable!] (restricted)
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  8. Michael D. Hurd, 1999. "Mortality Risk and Consumption by Couples," NBER Working Papers 7048, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 443-77, May.
  10. Hurd, Michael D, 1989. "Mortality Risk and Bequests," Econometrica, Econometric Society, vol. 57(4), pages 779-813, July. [Downloadable!] (restricted)
  11. Apps, Patricia & Rees, Ray, 2001. "Household Saving and Full Consumption over the Life Cycle," IZA Discussion Papers 280, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
  13. Martin Browning & Thomas F. Crossley, 2001. "The Life-Cycle Model of Consumption and Saving," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 3-22, Summer. [Downloadable!] (restricted)
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  14. Euwals, Rob & Börsch-Supan, Axel & Eymann, Angelika, 2000. "The Saving Behaviour of Two Person Households: Evidence from Dutch Panel Data," IZA Discussion Papers 238, Institute for the Study of Labor (IZA). [Downloadable!]
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