Economic Crisis and Saving Behavior

Israel José Santos Felipe
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Israel José Santos Felipe: Federal University of Ouro Preto

Chapter Chapter 3 in Individual Behaviors and Technologies for Financial Innovations, 2019, pp 47-67 from Springer

Abstract: Abstract This study used data from the Survey of Consumer Finances (SCF), 2007 and 2013, to examine the propensity to savings of American households in the pre- and post-economic crisis, based on the two-period consumption/savings model described by Bowman et al. (J Econ Behav Organ 38, 1999. https://doi.org/10.1016/S0167-2681(99)00004-9 ). This model assumes that asymmetry occurs in agents’ savings behavior in response to positive and negative shocks in income. Results obtained by logistic regression suggest that the 2008 global financial crisis has increased the relevance of factors such as the number of children, age, education level, income, and economic uncertainty, while other factors have diminished in relevance such as equity, financial risk tolerance, investment horizon, health, and home ownership. Evidence suggests that events of the magnitude of the crisis may lead to changes in the financial behavior of agents that are not entirely explained by the financial impacts suffered. The information discussed in this study may allow financial professionals and educators to provide recommendations that are more geared to the economic and financial reality of their countries. In addition, the discussions promoted here may offer opportunities for advancement in the study of savings determination.

Keywords: Saving; Crisis; Consumer finances; Financial well-being; H12; D14; D12 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-91911-9_3

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DOI: 10.1007/978-3-319-91911-9_3

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