Determinants of Household Saving in Australia

17 Pages Posted: 5 May 2003  

Mark N. Harris

Curtin University

Joanne Loundes

affiliation not provided to SSRN

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Abstract

This paper uses a unique survey of consumers to test several separate but inter-related hypotheses of household saving. Unit records from 17,585 Australian households are available, which enables the incorporation of a range of household characteristics that may be important factors for saving behaviour, but which are not typically available to researchers undertaking macroeconomic analyses. An ordered probit estimation method is used, and the results support the view that current incomes are perhaps the most important determinant of saving. However, it can also be seen that demographics and householders level of economic optimism play a key role.

Suggested Citation

Harris, Mark N. and Loundes, Joanne and Webster, Elizabeth, Determinants of Household Saving in Australia. Economic Record, Vol. 78, pp. 207-223, 2002. Available at SSRN: https://ssrn.com/abstract=314317

Mark N. Harris (Contact Author)

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

HOME PAGE: http://business.curtin.edu.au/contact/staff_directory/?profile=Mark-Harris

Joanne Loundes

affiliation not provided to SSRN

Elizabeth M. Webster

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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