dissaving


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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.

dissaving

the excess of current CONSUMPTION expenditure over current DISPOSABLE INCOME, the difference being met by HOUSEHOLDS drawing on their past SAVING. See SAVINGS SCHEDULE.
References in periodicals archive ?
Federal deficit spending, a huge and continuing act of dissaving, is the big culprit.
The most tangible analyses of the crisis at the time concentrated on the real economy either (i) from the perspective of analysing the household balance sheet (which was dissaving at an alarming rate, by which we mean consuming more than current income and running down any stock of savings); (ii) the wild path of fundamentals required to justify many asset, and in particular house, prices; or (iii) an analysis of global savings and investment, which suggested that capital was flowing uphill (from poorer to richer nations).
To the degree that auto-enrolled TSP participants were aware of their employer's matching contributions, participants' dissaving of their own contributions could be due to a wealth effect.
One is that, as the margins for dissaving are being exhausted, the conditions for investing in economically viable projects are becoming increasingly worse and secondly, but equally important, given the huge debts burdening the private sector, the ability to repay existing and new loans deteriorate to the point where new loans to stimulate the economy are neither demanded nor are, justifiably to some extent, being offered by the banks.
The editorial team wishes to recognize the following article of particular relevance to consumer decisions about preretirement saving and dissaving during economic downturns:
2013) found a negative relationship between impatience and saving, while our data revealed a positive relationship between "giving in to temptation" and "negotiation, borrowing, and dissaving.
Dissaving in these two countries could contribute to more robust global economic growth.
Collier (1999) argued of civil conflict affecting growth through the destruction of resources, the disruption of infrastructure and social order, budgetary substitution, dissaving, and portfolio substitution of foreign investors.
One important driver of increased saving has been the reduction in Federal dissaving amid the fastest pace of deficit reduction since the post-World War II demobilization.
Many empirical studies of expenditure patterns do not consistently confirm life-cycle or permanent-income theories, which assert that consumers attempt to maintain their lifetime consumption levels by saving during periods of high income and by dissaving when incomes are low.
The UK recovery is dependent on consumer debt and dissaving," said Philip Rush, an economist at Nomura International in London.
As age profiles rise and savings grow even in the newer developing countries over the coming decades, the older rich world heading to retirement will not necessarily be dissaving to match, he argues, preferring in many cases to save to excess into retirement as precaution.