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Income thresholds of dissaving in G ermany: empirical evidence from the recent sample survey of income and expenditure ( EVS 2008)
Author(s) -
Hufnagel Rainer
Publication year - 2012
Publication title -
international journal of consumer studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 1470-6423
DOI - 10.1111/j.1470-6431.2012.01126.x
Subject(s) - economics , sample (material) , consumer expenditure survey , debt , consumer expenditure , econometrics , demographic economics , public economics , finance , chemistry , aggregate expenditure , chromatography
Saving of private households monotonically increases with income. If the regression lines, which represent the ‘demand for saving’, assume negative values, saving turns into dissaving, i.e. dissolving assets or going into debt. The zeros of the demand functions for saving are called ‘dissaving thresholds’. Dissaving thresholds for G ermany are determined econometrically using the S ample S urvey of I ncome and E xpenditure. Dissaving thresholds turn out to be far higher than social assistance amounts. Implications for economic, social and consumer policy in G ermany are discussed.