Has there been a change in household saving behavior in the low inflation and interest rate environment?

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dc.contributor Bank of Finland
dc.contributor.author Oininen, Sami
dc.contributor.author Virén, Matti
dc.date.accessioned 2022-05-10T12:01:21Z
dc.date.available 2022-05-10T12:01:21Z
dc.date.issued 2022
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/18407
dc.description.abstract This paper examines whether the determinants of household saving have changed over time and whether they are the same across countries. Using a cross-country data for 34 OECD countries for the 1970-2019, we find that traditional saving rate specifications still perform strik ingly well and can explain the recent changes in household saving rates. As for the cross country differences in equilibrium saving rates, we have less success even though the basic estimating equation seems to fit reasonably well to individual country samples. We found that household saving is still very sensitive to changes in inflation and real income growth. Thus, decline in the household saving rate in the 1990s can mainly be attributed to these variables. Obviously, a decline of real interest rate has also pushed down the saving rate. Households seem to have reacted to changes in public sector as well as corporate sector saving so that there has been nontrivial degree of saving substitutability.
dc.format.extent 18
dc.language.iso ENG
dc.relation.ispartofseries BoF Economics Review
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject säästämisaste
dc.subject.other household saving
dc.subject.other private saving
dc.subject.other inflation
dc.subject.other debt neutrality
dc.title Has there been a change in household saving behavior in the low inflation and interest rate environment?
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202205101196
dc.subject.jel E21
dc.subject.jel G51
dc.series.name BoF Economics Review
dc.series.year 2022
dc.series.number 3/2022
dc.series.sortingnumber 003
dc.date.publication 10.5.2022
dc.subject.yso inflaatio
dc.subject.yso kotitaloudet (organisaatiot)
dc.subject.yso korko
dc.subject.yso säästäminen
bof-internal.includedInCRIS 1
dc.type.okm D4

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