the consumption level of all households who are perceived to be richer, on household savings and consumption. When …We demonstrate that interpersonal comparisons lead to "keeping up with the Joneses"-behavior. Using annual household …

-income households were slightly more affected than others due to their consumption patterns. The savings rate also depends on employment … or more of their income. On average, every household saved a good 17 percent of their income in 2013. …

savings motive theory. Some results in the paper can be used in making both household and national welfare decisions e …In this paper a new consumption function is derived based on savings motive hypothesis (SMH). The major theory behind …