Health, pension benefits and longevity: How they affect household savings?

Freitas, Najat El Mekkaoui de; Martins, Joaquim Oliveira

doi:10.1016/j.jeoa.2014.03.001

Cited by 15 publications

(2 citation statements)

References 37 publications

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“…Instead, the discussion was limited to Koskela and Virén (1983). The study findings are further related to recent contributions using a comparable analytical approach (Niculescu-Aron & Mihăescu 2012; Aizenman et al 2019;and El Mekkaoui de Freitas & Martins 2014). Koskela and Virén (1983) are revisited with more recent data as it is by far the oldest study using such an analytical approach.…”

Section: Introductionsupporting

confidence: 64%

“…Our findings are also compared with those in studies that are more recent. When included, the predictions of the disequilibrium savings hypotheses were also supported in the analyses of Niculescu-Aron and Mihăescu (2012), Aizenman et al (2019), and El Mekkaoui de Freitas and Martins (2014). Contrary to the other contributions, Niculescu-Aron and Mihăescu (2012), and El Mekkaoui de Freitas and Martins (2020a, 2020b, 2020c, 2020d, 2020e, 2020f, 2020g, 2020h).…”

Section: Discussionmentioning

confidence: 70%

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Determinants of Household Savings: A Cross-Country Analysis

Fredriksson

Staal

2021

Int Adv Econ Res

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This paper analyses determinants of household savings in a model based on an extension of the disequilibrium savings theory. These extensions follow from the life-cycle and permanent-income theories. Based on panel data for 14 countries spanning the period 2000–2018, fixed-effect least squares and two-stage least squares estimation procedures were used. In line with previous studies, there is strong and robust evidence for the hypotheses of disequilibrium savings theory, specifically, positive effects of unanticipated income changes, unanticipated inflation and the lagged savings rate. There is also robust evidence for the income uncertainty hypothesis that uncertainty has a positive effect on savings. The analysis presents some evidence that social security suppresses savings, but finds no significant effects on the interest rate or old-age dependency ratio. Unexpectedly, the participation rate of the elderly has a significant positive effect in some specifications. These findings contribute to the debate on whether and how governments can influence saving behavior.

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Section: Introductionsupporting

confidence: 64%

Section: Discussionmentioning

confidence: 70%

Determinants of Household Savings: A Cross-Country Analysis

Fredriksson

Staal

2021

Int Adv Econ Res

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Public Pension and Regional Disparity in Household Consumption

Qing¹,

Ma²

2023

Public Pension Reforms in China

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Household Savings and Negative Interest Rates

Staal

2023

Int Adv Econ Res

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This paper analyses determinants of household savings in a model based on an extension of the disequilibrium savings theory. These extensions follow from the life-cycle, permanent-income and Ricardian-equivalence theories. Based on panel data of 20 countries from the period 2000–2020, fixed-effect least squares estimation procedures are used. The analysis provides evidence that negative interest rates lead to a statistically and economic significant increase in savings. This implies that stimulating household consumption with a monetary policy of negative interest rates is counter-productive. The positive effect of income uncertainty and lagged saving rates gets smaller for negative interest rates, weakening the support for the disequilibrium-savings theory. Larger government deficits increase savings even more when rates are negative, strengthening the Ricardian equivalence effect. The effect of negative interest on the predictions of the life-cycle and permanent-income theories is mixed.

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Health, pension benefits and longevity: How they affect household savings?

Abstract: Abstract

Cited by 15 publications

References 37 publications

Determinants of Household Savings: A Cross-Country Analysis

Determinants of Household Savings: A Cross-Country Analysis

Public Pension and Regional Disparity in Household Consumption

Household Savings and Negative Interest Rates

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