The Dynamics of Personal Saving



In the analyses to this point, total expenditure has been used for the budget constraint, which (among other things) leaves the relationship between total expenditure, saving, and income up in the air. In this chapter, we shall take a brief look at the results from applying the B-C model to personal saving. Doing this is relevant not only to the present effort, but also for any insight that it might provide into the current extremely low personal saving rate in the U.S. However, a major problem in analyzing personal saving is deciding upon the particular measure to analyze. Three measures are available. The first measure is from the National Income and Product Accounts, the second is from the U.S. Flow of Fund Accounts constructed by the Federal Reserve, and, finally, the third is the one constructed by the Securities and Exchange Commission.


Saving Rate Capital Gain Financial Asset Consumption Expenditure Depreciation Rate 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ArizonaTucsonUSA

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