## Household Deleveraging and Saving Rates: A Cross-Country Analysis

_IMF Working Papers, October 29, 2021_

## Source details

**Canonical URL:** [Household Deleveraging and Saving Rates: A Cross-Country Analysis](https://www.imf.org/en/publications/wp/issues/2021/10/29/household-deleveraging-and-saving-rates-a-cross-country-analysis-501344)

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## Bibliographic details
- Authors: Romain Bouis
- Published: October 29, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781589064072.001

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### Key findings
- Using a sample of advanced and emerging market economies, the paper finds evidence of a negative relationship between changes of household debt-to-income ratios and saving rates.
- The relationship is asymmetric: it is significant only for debt build-ups.
- Declining debt ratios and saving are significantly related in some economies, but this relationship is driven by consumer credit, not by mortgages.
- Results suggest that the economic cost associated with household deleveraging may be overestimated and motivate a deleveraging via lower mortgages.

### Summary of research question and motivation
- Historically high household debt in several economies is calling for a deleveraging; some economists argue this adjustment can slow GDP growth by weighing on consumption.
- The paper investigates how changes in household debt-to-income ratios relate to saving rates across a cross-country sample.

### Subjects and keywords
- Subject: Consumer credit, Consumption, Credit, Disposable income, Financial institutions, Money, Mortgages, National accounts
- Keywords: Africa, consumer credit, Consumption, consumption growth, Credit, deleveraging, Disposable income, homeownership rate, Household debt, housing equity withdrawal., mortgages, rates from credit boom, saving rate, saving rates

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2021/10/29/household-deleveraging-and-saving-rates-a-cross-country-analysis-501344_