Identifying Drivers for the Accumulation of Household Financial Wealth

40 Pages Posted: 20 Feb 2013 Last revised: 3 Mar 2014

See all articles by Maria Belen Zinni

Maria Belen Zinni

Organization for Economic Co-Operation and Development (OECD)

Date Written: February 11, 2013

Abstract

Household financial assets and liabilities display considerable variation across countries and over time. This article investigates empirically the role of some of the key Life Cycle Model variables and other relevant factors behind household financial wealth disparities using data from 40 countries over the period 1995-2009. To the author's knowledge, it uses the largest macroeconomic dataset on household financial assets and liabilities assembled to date. The results are in line with the aggregative implications of the Life Cycle Model in that the wealth-to-income ratio decreases with income per capita growth and increases with the expected length of retirement. The study also presents empirical evidence for the role of financial and demographic developments on the accumulation of financial assets and liabilities by the household sector.

Keywords: Household sector balance sheets, financial wealth, household assets, household liabilities, financial development

JEL Classification: E01, E21

Suggested Citation

Zinni, Maria Belen, Identifying Drivers for the Accumulation of Household Financial Wealth (February 11, 2013). CEIS Working Paper No. 264, Available at SSRN: https://ssrn.com/abstract=2214962 or http://dx.doi.org/10.2139/ssrn.2214962

Maria Belen Zinni (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

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