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Household Composition and Savings: An Overview

  • Felix Freyland

    (Munich Center for the Economics of Aging (MEA))

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    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 Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy 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, 1994. "The Saving Behaviour of a Two Person Household," Discussion Papers 96-09, University of Copenhagen. Department of Economics, revised Jan 1996.
    2. Hurd, M., 1999. "Mortality Risk and Consumption by Couples," Papers 99-03, RAND - Labor and Population Program.
    3. Shelly Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Working Papers 0026, University of Washington, Department of Economics.
    4. Laibson, David I., 1997. "Golden Eggs and Hyperbolic Discounting," Scholarly Articles 4481499, Harvard University Department of Economics.
    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.
    6. Browning, Martin, 1995. "Saving and the intra-household distribution of income: an empirical investigation," Ricerche Economiche, Elsevier, vol. 49(3), pages 277-292, September.
    7. 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.
    8. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
    9. Martin Browning & Annamaria Lusardi, 1995. "Household Saving: Micro Theories and Micro Facts," Department of Economics Working Papers 1995-02, McMaster University.
    10. Bourguignon, F. & Chiappori, P-A., 1991. "Collective Models of Household Behaviour: An Introduction," DELTA Working Papers 91-29, DELTA (Ecole normale supérieure).
    11. Martin Browning & Mette Ejrnæs, 2009. "Consumption and Children," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 93-111, February.
    12. Euwals, Rob & Börsch-Supan, Axel H. & 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).
    13. Hurd, Michael D, 1989. "Mortality Risk and Bequests," Econometrica, Econometric Society, vol. 57(4), pages 779-813, July.
    14. Patricia Apps & Ray Rees, 2001. "Household Saving and Full Consumpyion Over the Life Cycle," CEPR Discussion Papers 428, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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