CHAPTER 3
Household Saving in Germany
Axel Bo
¨
rsch-Supan
Mannheim Research Institute for the Economics of Aging (MEA) and
Sonderforschungsbereich 504, University of Mannheim, Germany and
National Bureau of Economic Research (NBER), Cambridge, Massachusetts
Anette Reil-Held
Mannheim Research Institute for the Economics of Aging (MEA) and
Sonderforschungsbereich 504, University of Mannheim, Germany
Reinhold Schnabel
Department of Economics, University of Essen, Germany
3.1. Introduction
3.2. Data
3.3. The Flow of Household Saving
3.4. The Stock of Wealth by Age and Birth Cohort
3.5. The Institutional Background for Saving in
Germany
3.6. Links between Saving Patterns and Public Policy
3.7. Conclusions
References
3.1. INTRODUCTION
Household saving is still little understood, and answers even to the most basic
questions e.g., How does saving change over the life cycle? are controversial.
Understanding saving behavior is not only an important question because the
division of income into consumption and saving concerns one of the most
fundamental hous ehold decisions but it is also of utmost policy relevance since
private household saving as a private insurance interacts with social policy as a
public insurance.
In accordance with the general aims of this book, this chapter has two main
purposes and is structured accordingly. In the first part, we describe how German
Life Cycle Savings and Public Policy
Copyright 2003, Elsevier Science (USA). All rights reserved.
57

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