Working Paper
Expectations and Saving Behavior: An Empirical Analysis
Stefan Arent
Ifo Institute, Munich, 2012
Ifo Working Paper No. 128
Ifo Institute, Munich, 2012
Ifo Working Paper No. 128
In this paper we analyze the impact of the expectations about future labor income on the saving behavior of German households. We measure expectations on an individual basis instead of generalized risk measures as it is common in existing studies. We use a unique panel data set on household savings. We find that that a higher unemployment expectation significantly decreases savings. However, we are not able to identify a significant relationship between general future income expectations and savings. Moreover, we find that good health expectations increase savings in Western Germany, but decrease the savings in Eastern Germany.
Schlagwörter: Income expectations, unemployment expectations, health expectations, saving, behavior, savings
JEL Klassifikation: D120, D140, D310, D840, D910