Age Distribution, Saving and Consumption in Sweden
Uppsala University Working Paper 1996:22
19 Pages Posted: 20 Jan 1997
Date Written: November 1996
This paper focuses on an empirical analysis of the dependency between age structure and aggregate consumption and the composition of aggregate savings. In a long-run consumption function of life cycle type, different demographic variables have a conclusive, statistically significant effect. In investigating the link between demographic variables and the composition of aggregate savings, a simple simultaneous model is used, and a saving function and a house price equation are estimated. The result even here is that age composition matters for house prices and savings. This conclusion is also made visible by a simulation experiment. Finally, the model is used to ascertain the effect on the recent Swedish tax reform on savings.
JEL Classification: E21, J11
Suggested Citation: Suggested Citation