Why aren't developed countries saving?

Dobrescu, Loretti; Kotlikoff, Laurence J.; Motta, Alberto F

doi:10.1016/j.euroecorev.2012.04.003

Cited by 17 publications

(4 citation statements)

References 20 publications

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“…In some areas and countries where people's welfare is quite good, the older generations are reluctant to save. It is based on their preference to obtain immediate satisfaction at the current time (Dobrescu et al, 2012).…”

Section: Self-preferencementioning

confidence: 99%

Saving Behaviour: Factors That Affect Saving Decisions (Systematic Literature Review Approach)

Jumena

Siaila

Widokarti

2022

JER

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Savings have an important role as alternative funding when the primary income is in trouble. Previous research on saving behavior has been carried out fragmentary, which causes the conclusions to be partial. Therefore, it is necessary to research with a systematic literature review method to obtain a complete conclusion about the factors that can influence individual saving decisions. In this study, the articles used consisted of 124 published by Elsevier from 2012-2021. The results show that over the past ten years, research on saving behavior has been carried out in 185 countries and ten regions, with the method used consisting of 18 analytical methods. The results of the meta-synthesis show that 15 factors can influence the saving decision, viz: personal wealth, individual needs and dependency, macroeconomic, demographic, financial literacy, anticipatory, psychological and social, profit, self-obligation, financial service, savings product marketing, job profile, self-preference, financial goals, and geographic. The fifteen factors are classified into two groups: internal factors (consisting of 10 factors) and external factors (consisting of 5 factors).

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Section: Self-preferencementioning

confidence: 99%

Saving Behaviour: Factors That Affect Saving Decisions (Systematic Literature Review Approach)

Jumena

Siaila

Widokarti

2022

JER

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“…Therefore, when apparently large changes are detected in saving rates, causes are looked for along these lines. For instance, Dobrescu et al (2012) proposed models to elucidate the large declines in savings rates in developed countries, and concluded that the cause must be shifts in social preferences. This explanation, naturally, leaves open the question why preferences have been unstable.…”

Section: Lessons From the Literaturementioning

confidence: 99%

Saver types: An evolutionary-adaptive approach

Varga

Vincze

2019

Soc Ec

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We set up an agent-based macro-model that focuses on the consumption-saving decision. Agents do not maximize utility, but their behaviour features certain "rational" aspects of human choice based on the idea of ecological rationality. Three qualitatively different saving strategies are defi ned: 1, buffer stock saving (prudent and forward looking); 2, permanent income saving (forward looking without prudence); and 3, myopic saving (caring only about immediate consumption). It is found that prudent saving behaviour becomes prevalent when the selection pressure is very high, but an economy comprising only prudent households tends to accumulate capital in excess of what is implied by the Golden Rule. Lowering the intensity of evolutionary forces results in more diversity in saver types, and, somewhat puzzlingly, may be socially benefi cial in some sense.

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“…Scholz et al (2006) find from simulation studies that 20% of American households have less wealth than predicted from theoretical life-cycle models. Sub-optimal saving is not a local phenomenon, and it is observed worldwide (see, e.g., Lusardi and Mitchell, 2011;Dobrescu et al, 2012). The lack of saving has been related, among others, to cognitive deficits (Banks, 2010;Banks et al, 2010), procrastination (see, e.g., Loewenstein and Prelec, 1992;Frederick et al, 2002), the lack of financial literacy (Lusardi, 1999 and2004;Van Rooij et al, 2011 and2012) and access to financial products and institutions (Ssewamala and Sherraden, 2004;Schreiner and Sherraden, 2007;Han and Sherraden, 2009) as well as to the inability to exert self-control and delay immediate gratification (Thaler and Shefrin, 1981;Ameriks et al, 2007;Bucciol, 2012).…”

Section: Introductionmentioning

confidence: 99%

Teaching Children to Save and Lifetime Savings: What is the Best Strategy?

Bucciol

Veronesi

2013

SSRN Journal

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We study the effect of alternative parental teaching strategies on the propensity to save and the amount saved during adulthood. Using a panel dataset from the Dutch DNB Household Survey we find that parental teaching to save increases the likelihood that an adult will save by 16%, and the saving amount by about 30%. The best strategy involves a combination of different methods (giving pocket money, controlling money usage, and giving advice about saving and budgeting). The effect of parental financial socialization is persistent with age, but decays at elder age for the propensity to save.

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Why aren't developed countries saving?

Cited by 17 publications

References 20 publications

Saving Behaviour: Factors That Affect Saving Decisions (Systematic Literature Review Approach)

Saving Behaviour: Factors That Affect Saving Decisions (Systematic Literature Review Approach)

Saver types: An evolutionary-adaptive approach

Teaching Children to Save and Lifetime Savings: What is the Best Strategy?

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