The Household Saving Rate in Spain Between 2007 and 2016: Decomposition by Population Group and Possible Determinants

16 Pages Posted: 17 Dec 2019

See all articles by Brindusa Anghel

Brindusa Anghel

Foundation for Applied Economic Research (FEDEA)

Cristina Barcelo

Banco de España

Ernesto Villanueva

Banco de España - Research Department

Date Written: November 18, 2019

Abstract

The article quantifies the contributions made by different household groups to the change in the aggregate household saving rate in Spain between 2007 and 2016. Against the backdrop of the last crisis – heightened uncertainty and significant labour market deterioration – the findings show that certain household groups reduced their expenditure over the course of the downturn and then increased it again at the start of the recovery phase. Both these patterns are consistent with the hypothesis of precautionary saving. In particular, between 2007 and 2013, university-educated households and households with lower secondary education at most made a similar contribution to the increase in the saving rate, although the group with the lowest level of education, who are usually poorer, made a relatively higher contribution to the fall in the saving rate in 2013 to 2016. By year of birth, the group aged under 45 in 2007 made the largest contribution to the increase in the saving rate during the downturn. When households are grouped by the tenure status of their main residence, it was observed that homeowners with housing debt outstanding made a particularly high contribution to the increase in the saving rate in 2007 to 2013.

Keywords: aggregate saving, distribution by household type, precautionary saving

JEL Classification: D12, D14, E21

Suggested Citation

Anghel, Brindusa and Barcelo, Cristina and Villanueva, Ernesto, The Household Saving Rate in Spain Between 2007 and 2016: Decomposition by Population Group and Possible Determinants (November 18, 2019). Banco de Espana Article 34/19. Available at SSRN: https://ssrn.com/abstract=3504772

Brindusa Anghel (Contact Author)

Foundation for Applied Economic Research (FEDEA) ( email )

Jorge Juan 46
Madrid, 28001
Spain

Cristina Barcelo

Banco de España ( email )

Servicio de Estudios
Alcala, 48
Madrid, Madrid 28014
Spain
+34 91338 5887 (Phone)
+34 91 338 5678 (Fax)

Ernesto Villanueva

Banco de España - Research Department ( email )

Alcala 50
28014 Madrid
Spain

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