Alvarez-Cuadrado, Francisco; El-Attar, Mayssun - Institute for the Study of Labor (IZA) - 2012
average saving rate decreased by eight percentage points. Over the same period the US experienced a substantial increase in … inequality and a continuous decrease in the aggregate saving rate. We propose an explanation based on interpersonal comparisons … consistent with these trends. When households care about their consumption relative to others, individual saving rates decrease …