Consumer Optimism and Saving Behavior

Lim, H.N., Hanna, S. D., & Montalto, C.M. (2011). Consumer optimism and saving behavior. Proceedings of the Academy of Financial Services.

22 Pages Posted: 26 Jun 2015

See all articles by HanNa Lim

HanNa Lim

Samsung Life Insurance - Retirement Research Center

Sherman D. Hanna

Ohio State University (OSU)

Catherine Phillips Montalto

Ohio State University (OSU)

Date Written: June 24, 2015

Abstract

This study examines the factors affecting household saving, extending previous research by adding measures of consumer optimism to the variables previous investigators used to analyze saving behavior. In addition to expectations about household income and the economy, we create an optimism variable related to life expectancy. The 1995-2007 Survey of Consumer Finances datasets were used. Two multivariate analyses show that including optimism variables in the model improved the explanation of household saving behavior. In general, those who are optimistic about future income, future economy, and life expectancy are more likely to be savers than are pessimistic individuals.

Keywords: behavioral life cycle hypothesis, life cycle hypothesis, saving behavior, self-control, Survey of Consumer Finances, optimism

JEL Classification: D12, D14, D91, E21

Suggested Citation

Lim, HanNa and Hanna, Sherman D. and Montalto, Catherine Phillips, Consumer Optimism and Saving Behavior (June 24, 2015). Lim, H.N., Hanna, S. D., & Montalto, C.M. (2011). Consumer optimism and saving behavior. Proceedings of the Academy of Financial Services. . Available at SSRN: https://ssrn.com/abstract=2622810

HanNa Lim

Samsung Life Insurance - Retirement Research Center ( email )

Seoul
Korea, Republic of (South Korea)

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

Catherine Phillips Montalto

Ohio State University (OSU)

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

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