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Understanding the postwar decline in United States saving: a cohort analysis

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  • Jagadeesh Gokhale
  • Laurence J. Kotlikoff
  • John Edward Sabelhaus

Abstract

An analysis of the postwar decline in U.S. national saving that decomposes changes in the net national saving rate into those due to changes in cohort-specific consumption propensities, the intergenerational distribution of resources, the rate of government spending, and demographics. ; A review and expansion of Calomiris, Kahn, and Longhofer's (1994) cultural affinity theory of discrimination in the residential mortgage market, which is based on the idea that lenders find it easier or less costly to evaluate the creditworthiness of applicants with whom they have a common experiential background.

Suggested Citation

  • Jagadeesh Gokhale & Laurence J. Kotlikoff & John Edward Sabelhaus, 1995. "Understanding the postwar decline in United States saving: a cohort analysis," Working Papers (Old Series) 9518, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9518
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    References listed on IDEAS

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    1. Barry Bosworth & Gary Burtless & John Sabelhaus, 1991. "The Decline in Saving: Evidence from Household Surveys," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 183-256.
    2. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff & John Edward Sabelhaus & David N. Weil, 1994. "The annuitization of Americans' resources: a cohort analysis," Working Papers (Old Series) 9413, Federal Reserve Bank of Cleveland.
    3. Lawrence Summers & Chris Carroll, 1987. "Why Is U.S. National Saving So Low?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 607-642.
    4. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-1198, December.
    5. David M. Cutler & James M. Poterba & Louise M. Sheiner & Lawrence H. Summers, 1990. "An Aging Society: Opportunity or Challenge?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1), pages 1-74.
    6. Orazio P. Attanasio, 1998. "Cohort Analysis of Saving Behavior by U.S. Households," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 575-609.
    7. Michael J. Boskin & Lawrence J. Lau, 1988. "An Analysis of Postwar U.S. Consumption and Saving: Part I -- The Model and Aggregation," NBER Working Papers 2605, National Bureau of Economic Research, Inc.
    8. Laurence J. Kotlikoff & Laurence J. Kotlikoff & Willi Leibfritz, 1999. "From Deficit Delusion to the Fiscal Balance Rule: Looking for an Economically Meaningful Way to Assess Fiscal Policy," NBER Chapters, in: Generational Accounting around the World, pages 9-30, National Bureau of Economic Research, Inc.
    9. Michael J. Boskin & Lawrence J. Lau, 1988. "An Analysis of U.S. Postwar Consumption and Saving: Part II -- Empirical Results," NBER Working Papers 2606, National Bureau of Economic Research, Inc.
    10. repec:fth:harver:1490 is not listed on IDEAS
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    Cited by:

    1. Jagadeesh Gokhale & Laurence J. Kotlikoff & Mark J. Warshawsky, 2001. "Life-cycle saving, limits on contributions to DC pension plans, and lifetime tax benefits," Working Papers (Old Series) 0102, Federal Reserve Bank of Cleveland.
    2. Kaiji Chen & Ayşe İmrohoroğlu & Selahattin İmrohoroğlu, 2007. "The Japanese saving rate between 1960 and 2000: productivity, policy changes, and demographics," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(1), pages 87-104, July.
    3. Jagadeesh Gokhale & Laurence J. Kotlikoff, 2002. "The Impact of Social Security and Other Factors on the Distribution of Wealth," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 85-114, National Bureau of Economic Research, Inc.
    4. Gokhale, Jagadeesh & Kotlikoff, Laurence J. & Sefton, James & Weale, Martin, 2001. "Simulating the transmission of wealth inequality via bequests," Journal of Public Economics, Elsevier, vol. 79(1), pages 93-128, January.
    5. Albert Ando & Andrea Moro, 1995. "Demographic Dynamics, Labor Force Participation and Household Asset Accumulation: Case of Japan," NBER Working Papers 5261, National Bureau of Economic Research, Inc.
    6. Jagadeesh Gokhale, 1996. "Demographic change, generational accounts, and national saving in the United States," Working Papers (Old Series) 9603, Federal Reserve Bank of Cleveland.

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    Keywords

    Saving and investment;

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