Household Saving in France: Stochastic Income and Financial Deregulation

By Joaquim Vieira Ferreira Levy, Jonathan David Ostry

November 1, 1994

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Joaquim Vieira Ferreira Levy, and Jonathan David Ostry. Household Saving in France: Stochastic Income and Financial Deregulation, (USA: International Monetary Fund, 1994) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The household saving ratio in France has undergone very sharp changes over the past two decades, falling dramatically in the first part of the 1980s before rising in more recent years. This paper emphasizes two factors in the evolution of private saving in France. The first relates to perceptions of household income growth and uncertainty, which are likely to have been affected by deteriorating labor market conditions, and which may therefore help to account for the recent increase in saving. The second factor relates to financial deregulation which may have lowered saving and increased its sensitivity to interest rate changes. It is argued that both factors have played some role in the evolution of French household saving.

Subject: Financial institutions, Financial services, Futures, Labor, National accounts, Personal income, Precautionary savings, Real interest rates

Keywords: Futures, Growth variable, Household saving, Income growth, Interest rate, Labor income, Personal income, Precautionary savings, Present value, Real interest rates, Saving ratio, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/136
Stock No:

WPIEA1361994
ISBN:

9781451855746
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 42, No. 2, June 1995.

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