12) I drop families with any adult older than age 50 to avoid the electronic transfer mandate for public pensions, which affected households with an adult age 60 and over, as well as to account for any declines in labor force participation or dissaving
as this cohort retires.
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.
Moreover, the main buyers of Japan's government bonds-Japanese workers and retirees-are rapidly aging and shifting from saving to dissaving
According to the life cycle hypothesis, this borrowing will predictably occur during an individual's earlier years along with dissaving
in later years (Ando and Modigliani 1963).
With social saving (government dissaving
plus private saving) at the full employment level, output need not fall in order to equate private saving to a lower level of exogenous investment.
However, the "culture approach" fails to explain why in around the 1950s Korea was dissaving
, but the country's savings has risen to almost 35 percent of its gross domestic product (GDP) since the1960s.
Measurement error in income likely explains some of the most noticeable differences between changes in income poverty and in consumption poverty, but saving and dissaving
appear to play a modest role for most demographic groups.
Because there is no dissaving
, the pure rate of interest does not systematically rise.
This is a form of dissaving
, as the country consumes more than it produces.
Hamilton: It could be part of the story, because part of dissaving
is depreciation of fixed assets, right?