Negative Saving

(redirected from Dissavings)

Negative Saving

A situation in which the persons in an economy save, in the aggregate, less than they spend. For example, suppose a small economy exists in which the people spend in total $1 million, but only manage to save $800,000. This economy has negative savings. By its nature, negative saving requires an economy (though not necessarily the government) to take on debt.
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4 billion, and federal government dissavings was $582.
GDP, largely comprised of substantial dissavings (negative savings, thus requiring borrowing) by government, and only modestly positive savings by households and retained corporate earnings in the rest of the economy.
If the whole of the $787 billion stimulus package had consisted of an across-the-board tax cut, there would have been a large deleveraging of the economy with an increase in private savings without an equivalent cut in private spending--the increased private savings being matched by public dissavings reflected in the increased budget deficit.
Two MHSOs actually experienced Medicare dissavings that will require a turnaround in performance over the next 2 1/2 years.
Consumer research finds that low income households spend more than they make (4) and dissavings in an I-O framework would be counted as higher local expenditure.
With a view to turning the dissavings to savings, the government is making an effort to reduce its fiscal deficit and to ensure a surplus on the current account of the budget.
Although the Chiang Mai survey does not permit comparisons of financial variables over time between households that experienced a death and those that did not, fully 41 percent of households with a death report having sold land, 57 percent report some dissavings, and 24 percent report borrowing from a cooperative or revolving fund (i.
The sources of the current account deficit are the increasing demand for consumer and investment goods by the private sector, which started after implementation of the real plan, and a continuing trend of public sector dissavings in the economy.
This source of cost savings is a separate issue and may interact with cost savings or dissavings due to financial arbitrage.
On this basis, it appears that the inflows of foreign capital in the 1980s were used to fill the gap between income and spending created by the federal government and household dissavings.
To the extent that this variable also captures whether the household's savings rate (or perhaps more importantly dissavings rate) falls short of that of a reference household, it would imply that such behavior leads to diminished overall life satisfaction.
Savings will front-loaded to fiscal 2013, with modest dissavings in certain years thereafter.