Do the Rich Save More in Canada?
Sule Alan (),
Kadir Atalay and
Quantitative Studies in Economics and Population Research Reports from McMaster University
This paper is an attempt to answer the long standing question of whether households with higher lifetime income save a larger fraction of their income. The major difficulty in empirically assessing the relationship between lifetime incomes and saving rates is to construct a credible proxy for lifetime income. The Canadian Family Expenditure Survey (FAMEX) provides us with both unusually good data on savings rates and potential instruments with which we can construct reliable lifetime income proxies. Our empirical analysis suggests that the estimated relationship between saving rates and lifetime incomes is sensitive to the instrument used to proxy lifetime income. Nevertheless, our preferred estimates indicate that, except for poorest households (who simply do not save), saving rates do not differ substantially across lifetime income groups.
Keywords: saving rates; lifetime income; permanent income (search for similar items in EconPapers)
JEL-codes: C81 D12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
Working Paper: Do the Rich Save More in Canada? (2013)
Working Paper: Do the Rich Save More in Canada? (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mcm:qseprr:406
Access Statistics for this paper
More papers in Quantitative Studies in Economics and Population Research Reports from McMaster University Contact information at EDIRC.
Series data maintained by ().