Expectations and Saving Behavior: An Empirical Analysis
In 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.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Erik Hornung, 2012.
"Railroads and Micro-regional Growth in Prussia,"
Ifo Working Paper Series
Ifo Working Paper No. 127, Ifo Institute for Economic Research at the University of Munich.
- Christopher D Carroll & Karen E Dynan & Spencer D Krane, 1999.
"Unemployment Risk and Precautionary Wealth: Evidence from Households' Balance Sheets,"
Economics Working Paper Archive
416, The Johns Hopkins University,Department of Economics.
- Christopher D. Carroll & Karen E. Dynan & Spencer D. Krane, 2003. "Unemployment Risk and Precautionary Wealth: Evidence from Households' Balance Sheets," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 586-604, August.
- Christopher D. Carroll & Karen E. Dynan & Spencer D. Krane, 1999. "Unemployment risk and precautionary wealth: evidence from households' balance sheets," Finance and Economics Discussion Series 1999-15, Board of Governors of the Federal Reserve System (U.S.).
- Eeckhoudt, Louis & Schlesinger, Harris, 2008.
"Changes in risk and the demand for saving,"
Journal of Monetary Economics,
Elsevier, vol. 55(7), pages 1329-1336, October.
- Louis Eeckhoudt & Harris Schlesinger, 2008. "Changes in Risk and the Demand for Saving," CESifo Working Paper Series 2388, CESifo Group Munich.
- EECKHOUDT, Louis & SCHLESINGER, Harris, . "Changes in risk and the demand for saving," CORE Discussion Papers RP -2100, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ekern, Steinar, 1980. "Increasing Nth degree risk," Economics Letters, Elsevier, vol. 6(4), pages 329-333.
- Stefan Arent & Alexander Eck & Michael Kloss & Oskar Krohmer, 2012. "Income Risk, Saving and Taxation:Will Precautionary Saving Survive?," Ifo Working Paper Series Ifo Working Paper No. 125, Ifo Institute for Economic Research at the University of Munich.
When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_128. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.