Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18167
Authors: 
Schrooten, Mechthild
Stephan, Sabine
Year of Publication: 
2004
Series/Report no.: 
DIW Discussion Papers 431
Abstract: 
Private savings mirror consumption behavior. In Europe, the dynamic of consumption is very low, and at the same time, savings are increasing. Is this a result of macroeconomic policy? A GMM estimator is used to analyze the determinants of private saving in the EU?s 15 member states. Our main findings are that savings rates inherit a certain degree of persistence and that income growth causes an increase in saving. While monetary policy is totally insignificant, fiscal policy has a major impact on private savings. The long-run effects of public deficits are greater than the effects of rising income.
Subjects: 
Dynamic panel data model
private savings
European Union
GMM estimator
JEL: 
E21
C33
Document Type: 
Working Paper

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