A Framework of Asset-Accumulation Stages and Strategies

Sondra Beverly (), Amanda Moore and Mark Schreiner ()
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Amanda Moore: Washington University in St. Louis

Development and Comp Systems from EconWPA

Abstract: We propose that asset accumulation occurs in three stages. In the first stage (reallocation), current resource inflows must exceed current outflows. To meet this objective, people reallocate resources from current consumption, current leisure, or future consumption or leisure. In the second stage (conversion), people may convert resources from liquid to illiquid forms. In the third stage (maintenance), individuals resist temptations to dissave. We suggest that people adopt psychological and behavioral strategies to achieve each of these objectives. Putting the two types of strategies together with the three stages of asset accumulation results in six strategy groups. We provide examples of each strategy group and discuss implications related to encouraging account ownership among the unbanked, improving asset- accumulation programs, and improving financial-education curricula.

Keywords: Saving; asset accumulation; self-constraint; pyschological savings strategies (search for similar items in EconPapers)
JEL-codes: O51 I3 N3 D91 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mfd
Date: 2001-09-05
Note: Type of Document - Adobe Acrobat 3.0; prepared on Windows 98; to print on Adobe Acrobat 3.0; pages: ; figures: Included in pdf file
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0109004

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