Household Saving in France: Stochastic Income and Financial Deregulation

Joaquim Levy and Jonathan Ostry

No 1994/136, IMF Working Papers from International Monetary Fund

Abstract: The household saving ratio in France has undergone very sharp changes over the past two decades, falling dramatically in the first part of the 1980s before rising in more recent years. This paper emphasizes two factors in the evolution of private saving in France. The first relates to perceptions of household income growth and uncertainty, which are likely to have been affected by deteriorating labor market conditions, and which may therefore help to account for the recent increase in saving. The second factor relates to financial deregulation which may have lowered saving and increased its sensitivity to interest rate changes. It is argued that both factors have played some role in the evolution of French household saving.

Keywords: WP; present value; interest rate; income growth; labor income; growth variable; saving ratio; household saving; Personal income; Futures; Real interest rates; Precautionary savings (search for similar items in EconPapers)
Pages: 32
Date: 1994-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=1319 (application/pdf)

Related works:
Journal Article: Household Saving in France: Stochastic Income and Financial Deregulation (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1994/136

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().