Do the rich save more? A new view based on intergenerational transfers
Document Type
Journal article
Source Publication
Southern Economic Journal
Publication Date
10-1-2006
Volume
73
Issue
2
First Page
362
Last Page
373
Abstract
Do richer people have higher saving rates? The short-run and long-run consumption functions have different answers to this question, which results in the "consumption puzzle" that was a focus of macroeconomic research in the 1950s and 1960s. In a recent empirical contribution, Dynan, Skinner, and Zeldes (2004) revive this old question and make this "consumption puzzle" more intriguing, by showing that the average propensity to consume decreases not only with current income but also with lifetime income. This paper provides a model that helps resolve this puzzle from an intergenerational perspective.
DOI
10.2307/20111896
Print ISSN
00384038
E-ISSN
23258012
Publisher Statement
Copyright © 2006 Southern Economic Association
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Fan, C. S. (2006). Do the rich save more? A new view based on intergenerational transfers. Southern Economic Journal, 73(2), 362-373. doi: 10.2307/20111896