Sweden: Selected Issues
IMF Staff Country Reports, November 17, 2017
Source details
- Canonical URL
- Sweden: Selected Issues
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Bibliographic details
- Published: November 17, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484329665.002
Summary
- This Selected Issues paper analyzes the high household savings in Sweden.
- Preliminary evidence suggests that the large increase in savings after the financial crisis may reflect the rising cost of elder care.
- Econometric analysis appears to confirm anecdotal explanations that extended life expectancy and a preference for higher-quality residential care have contributed to higher savings.
- Anecdotal reports indicate parental assistance in young people’s home purchases could be behind the increased saving and serves as an additional bequest motive.
- Further analysis using more granular, household level data is needed to test alternative hypotheses for the rise in household savings and to investigate parental assistance as a bequest motive.
Findings and Analysis
- Large increase in household savings after the financial crisis.
- Preliminary evidence links higher savings to rising cost of elder care.
- Econometric analysis supports explanations involving:
- Extended life expectancy.
- Preference for higher-quality residential care.
- Anecdotal evidence points to parental assistance for young homebuyers as an additional driver of saving.
Data Needs and Research Gaps
- Need for more granular data to test alternative hypotheses for the rise in household savings.
- Household level data would significantly aid investigation of parental assistance and bequest motives.
Publication and Metadata
- Publication title: Sweden: Selected Issues
- Series: Country Report No. 2017/351
- Issue: 351
- Volume: 2017
- Pages: 35
- Publication date on landing page: November 17, 2017
- DOI: https://doi.org/10.5089/9781484329665.002
- Stock No: 1SWEEA2017009
- ISBN: 9781484329665
- ISSN: 1934-7685
- Subject: Labor, Labor markets, Real wages, Wage bargaining, Wages
- Keywords: Baltics, CR, Europe, Global, household saving, ISCR, Labor markets, precautionary savings theory, rate, Real wages, saving, saving rate, savings behavior, wage, Wage bargaining, wage growth, Wages
Source: IMF Staff Country Report No. 2017/351, "Sweden: Selected Issues" (November 17, 2017).
Content in this bundle
- Country Report