This paper empirically investigates the effects of changes in the interest rate as well as transitory income uncertainty on households' consumption-savings decision. Applying a structural demand model to German survey data, we estimate the uncompensated interest rate elasticity for savings, in line with the literature, to around zero. Accordingly, any policy-induced variation of net returns to ...
Berlin:
DIW Berlin,
2010,
(DIW Discussion Paper No. 1046)
| Martin Beznoska, Richard Ochmann