Household Wealth and Saving in New Zealand: Evidence from the Longitudinal Survey of Family, Income and Employment

Motu Economic and Public Policy Research Working Paper No. 10-06

32 Pages Posted: 9 Sep 2010 Last revised: 16 Sep 2010

See all articles by John Gibson

John Gibson

University of Waikato; Motu Economic and Public Policy Research

Steven Stillman

Free University of Bozen-Bolzano; IZA Institute of Labor Economics

Trinh Le

Motu Economic and Public Policy Research Trust

Date Written: September 1, 2010

Abstract

This paper uses data from the Survey of Family, Income and Employment (SoFIE) to estimate household saving in New Zealand between 2004-2006. Comprehensive data on wealth is collected biannually in SoFIE and we calculate household saving by examining how wealth has changed over time. We find that even the most conservative estimate of household saving was at least 14% of gross income during this time period. On the other hand, the indirectly derived Household Income and Outlay Accounts (HIOA) indicate (net) household saving was -12.5% per year over the same period. We also find no evidence that capital gains in housing during this time period crowded out saving or that the composition of household wealth in New Zealand differed from that in other developed countries.

Keywords: Saving, Wealth, New Zealand, SoFIE

JEL Classification: D31, J18, D91

Suggested Citation

Gibson, John and Stillman, Steven and Le, Trinh, Household Wealth and Saving in New Zealand: Evidence from the Longitudinal Survey of Family, Income and Employment (September 1, 2010). Motu Economic and Public Policy Research Working Paper No. 10-06, Available at SSRN: https://ssrn.com/abstract=1673584 or http://dx.doi.org/10.2139/ssrn.1673584

John Gibson

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

19 Milne Terrace
Island Bay
Wellington, 6002
New Zealand

Steven Stillman (Contact Author)

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bozen-Bolzano (BZ), Bozen 39100
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Trinh Le

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

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