Empirical Analysis of the Saving Rate in the United States
Journal of Management Policy and Practice
After two decades of decline, the personal saving rate in the United States has increased since the onset of the Great Recession. This paper empirically analyzes the factors affecting the saving rate and factors that contributed to the recent increase in the saving rate. Our results imply that changes in the determinants of the saving rate suggested by economic theory can explain much of the recent trend in the personal saving rate. Specifically, reduction in the household net wealth had the largest contribution to the increase in the saving rate, while reduction in interest rates negatively affected households’ incentives to save. These findings have important policy implications.
Hedayeh Samavati, Nodir Adilov, and David A. Dilts (2013).
Empirical Analysis of the Saving Rate in the United States. Journal of Management Policy and Practice.14 (2), 46-53.