personal savings ratio

personal savings ratio

the proportion of households‘DISPOSABLE INCOME that is SAVED. Savings ratios can vary over time, depending upon households’ confidence about their future employment prospects and their WEALTH, although contractual saving through insurance and pension contributions tends to be more stable. In the CIRCULAR FLOW OF NATIONAL INCOME, increases in the personal savings ratio will cause consumption spending to fall, and unless this is offset by an increase in investment spending or net exports, AGGREGATE DEMAND will decline.

See SAVING RATIO.

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According to gender-based indicators, men in Turkey tend to save more than women, and their personal savings ratio has grown, despite the increasing level of employment of women.
3 portrays a substantially lower personal savings ratio (= household savings as percent of disposable income) in the periphery than in the core.
Fact 2: Accompanied by a significantly lower personal savings ratio in euro periphery relative to the core, housing inves tment expenditures in the periphery experienced a boom, while housing investment declined in the core countries.
3 above shows, the personal savings ratio in EMU's periphery was persistently lower than in the EMU core countries.
Among them, we have in the periphery a rising personal savings ratio instead of the empirically observed decline and an insufficiently rapid increase in periphery's real exchange rate.
Knowing that the larger steady state in (12) is asymptotically stable we are now entitled to inquire whether the empirically observed pre-euro North-south differences with respect to the real interest rates, real wage rates and personal savings ratios can be attributed to North-south differences in household's savings rates, government expenditure quotas and capital production shares.
The satisfaction of these desires, in the form of mass ownership of consumer durables, is seen both as a measure of the prosperity of the country and as a harbinger of doom to those concerned about falling trends in the personal savings ratio.

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