Labour and Public Policy Seminar: Martin Blomhoff Holm, BI Norwegian Business School and Oslo University

Title: Saving behavior across the wealth distribution

2018.07.31 | Charlotte Sparrevohn

Date Fri 23 Nov
Time 12:15 13:00
Location Fuglesangs Allé 4, 8210 Aarhus V, Building 2630-(K)101

Presenter: Martin Blomhoff Holm, BI Norwegian Business School and Oslo University

Title: Saving behavior across the wealth distribution

Abstract: We use Norwegian administrative panel data on income and wealth to examine saving behavior across the wealth distribution, ranging from the bottom to the very top. We document a U-shaped relation between saving rates out of income and individual net worth: saving rates decrease with net worth for individuals with negative net worth and increase for those with positive net worth. We argue that these facts contradict the linearity property inherent in many workhorse macro models that consumption and saving policy functions are approximately linear in wealth away from borrowing constraints, and discuss alternative models that better fit the data.

Host: Juan Carlos Parra-Alvarez

Organizer: Maria Humlum

Labour and Public Policy Seminars
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