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Kruger says reports of phantom mobile phone ringing/vibrating more common among anxious

Stafford says too early to say whether stock market declines will curtail Americans' spending

Eisenberg says many colleges now train campus personnel to spot and refer troubled college students

Highlights

Call for papers: Conference on Integrating Genetics and the Social Sciences, Oct 21-22, 2016, CU-Boulder

PRB training program in policy communication for pre-docs. Application deadline, 2.28.2016

Call for proposals: PSID small grants for research on life course impacts on later life wellbeing

PSC News, fall 2015 now available

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Monday, Feb 1 at noon, 6050 ISR-Thompson
Sarah Miller

The Decline in Household Saving and the Wealth Effect

Publication Abstract

Juster, F.T., J.P. Lupton, J.P. Smith, and Frank P. Stafford. 2006. "The Decline in Household Saving and the Wealth Effect." Review of Economics and Statistics, 88(1): 20-27.

Using a unique set of household-level panel data, we estimate the effect of capital gains on saving by asset type, controlling for observable and unobservable household-specific fixed effects. The results suggest that the decline in the personal saving rate since 1984 is largely due to the significant capital gains in corporate equities experienced over this period. Over 5-year periods, the effect of capital gains in corporate equities on saving is substantially larger than the effect of capital gains in housing or other assets. Failure to differentiate wealth effects across asset types results in a significant understatement of their size.

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