Saving and Permanent Income: Evidence from the 1992 Scf

Finance and Economics Discussion Series (95-41)

Posted: 14 Jul 1998

See all articles by Arthur B. Kennickell

Arthur B. Kennickell

Federal Reserve Board - Department of Research & Statistics

Date Written: September 11, 1995

Abstract

This paper looks at household saving primarily using a three-level indicator originally developed for the 1992 Survey of Consumer Finances. The paper examines this saving variable in light of other indicators of saving behavior observed in the survey, and uses the variable to model saving behavior. This model contains, among other variables, an indicator of typical saving practices as a control for individual heterogeneity. The model provides interesting results on the role of transitory income, age, expectations, and other factors on saving. These results suggest that indicator variables may provide sufficient information for modeling without severely burdening survey respondents.

JEL Classification: E21, D12, C42

Suggested Citation

Kennickell, Arthur B., Saving and Permanent Income: Evidence from the 1992 Scf (September 11, 1995 ). Finance and Economics Discussion Series (95-41). Available at SSRN: https://ssrn.com/abstract=7017

Arthur B. Kennickell (Contact Author)

Federal Reserve Board - Department of Research & Statistics ( email )

20th & C. St., N.W.
Washington, DC 20551
United States
202-452-2247 (Phone)
202-452-5295 (Fax)

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