Household composition and savings: an overview

Felix Freyland

No 04-69, Papers from Sonderforschungsbreich 504

Abstract: In recent years the literature on household saving behavior has been enriched by a number of contributions focusing on the problem of modeling a household as a single decision unit. It has reasonably been argued that with respect to household consumption and saving behavior the simple approach of modeling households as one representative decider could involve major mistakes. Thus the literature has enriched the basic model by incorporating variables that describe the composition of a household examples being the number and age of children, household member's life expectancies and the intra-household distribution of income. This paper reviews these developments and empirical results in the latest literature, with a particular focus on intra-household income distributions.

Date: 2004
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