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uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the … uncompensated interest rate elasticity for savings, in line with the literature, to around zero. Accordingly, any policy …-induced variation of net returns to savings is expected to have no significant effects on the level of savings. Moreover, we find …
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We analyze whether uncertainty related to the outcome of future policy results in precautionary saving. We focus on an important cause of policy uncertainty for households in the Netherlands: the possible limitation of the mortgage interest deduction. To isolate the effect of policy uncertainty...
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savings patterns. Terrorism increases household savings to a significant and economically meaningful degree. Two terror … of attacks is negative, savings increase with the number of fatalities. We give a potential explanation for this …
Persistent link: https://www.econbiz.de/10012834678
Mutual fund and ETF savings plans (SPs) are becoming an increasingly important part of retail investor portfolios and …
Persistent link: https://www.econbiz.de/10014351776
Using customer data from a large fintech company offering “guaranteed” Euro certificates of deposits from various European banks, we document considerable heterogeneity in offered interest rates for the same maturity across and within countries for such a simple product. We find that 11% of...
Persistent link: https://www.econbiz.de/10014349918
The author's study analyzes, loan valuation methods using discrete time model of contingent claims analysis. In the empirical test, the undiversifiable risk was measured by the correlation coefficient of one borrower with the average return of all borrowers. The results of the test supported the...
Persistent link: https://www.econbiz.de/10012920146