Alternative Measures of Personal Saving

Slides:



Advertisements
Similar presentations
Changes in measurement of savings: Perspectives from a consumer (of NA data) Alain de Serres* OECD Florian Pelgrin * Bank of Canada * Personal views, not.
Advertisements

INCORPORATING DISTRIBUTIONAL INFORMATION INTO THE NATIONAL ACCOUNTS by Dale W. Jorgenson November 16, 2012 BEA Advisory Committee Comments on Edward Harris.
Copyright © 2007 Global Insight, Inc. The U.S. Economic Outlook: How Much Fallout from The Housing Meltdown? Nariman Behravesh Chief Economist NAHB April.
Investment and Saving Decisions
Recent Trends in the Evolution of Household Saving and Wealth Components in Canada Presentation to the OECD Working Party on Financial Accounts Patrick.
Basic Macroeconomic relationships
Economic Outlook for Consumers William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago University of Illinois Center for.
Chapter 7: Savings and Investment
Chapter 2: The Data of Macroeconomics
Chapter 7: Savings and Investment
Saving and Capital Formation Chapter 9. Saving & Wealth Saving : flow Wealth: stock.
Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 15 The Economics of Consumption Behavior.
J. K. Dietrich - FBE 524 – Fall 2005 Financial System Overview and the Flow of Funds Week 1 – August 24, 2005.
CH. 8: THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL
8 CAPITAL, INVESTMENT, AND SAVING CHAPTER.
GDP and Unemployment Chapter 5. The Circular Flow Goods Other countries Financial markets Government Firms (production) Household Taxes Factor services.
The Role of Statistics in the United States’ Economic Future “Statistics for policymaking: Europe 2020” Eurostat March 10th, 2011 J. Steven.
Aggregate Demand. Aggregate Demand Aggregate Demand slopes downward like other demand curves, but for different reasons.
Chapter 7 Savings and Investment Process © 2000 John Wiley & Sons, Inc.
Actuarial Measures of Defined Benefit Pension Plans for the National Accounts Marshall Reinsdorf BEA Advisory Committee Meeting May 11, 2012.
Women and the Wealth Gap Presented by Mariko Chang, PhD
2Q | 2011 Guide to the Markets As of March 31, 2011.
© 2008 Pearson Addison-Wesley. All rights reserved The Measurement and Structure of the National Economy Chapter 2.
Changes in the Measurement of Pensions in the US National Income and Product Accounts Brent Moulton Group of Experts on National Accounts –
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Business Cycles, Unemployment, and Inflation 6.
Fifth Edition Update 2005–2006. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2 Figure 1 Personal Savings Rate Chapter 2 Update: Wealth.
Chapter 20 Financial Aspects of Household and Firm Behavior ©2000 South-Western College Publishing.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 19 Delving Deeper Into Macroeconomics.
Measuring the Economy. The Economy as a Circular Flow Resources FirmsHouseholds Goods and Services Expenditures Income.
Chapter 5 Saving and Investment in the Open Economy.
The Outlook for the U.S. Economy and Home Improvement Spending James Gillula Managing Director, Consulting Services IHS Global Insight April 2014.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
DataPost Personal Saving Rate Delayed Consumption Federal Reserve Bank of San Francisco Economic Education & Outreach Date last updated: September 8, 2015.
DataPost Personal Saving Rate Delayed Consumption Federal Reserve Bank of San Francisco Economic Education Group Date last updated: September 8, 2014.
GDP Using the Income Approach: the U.S. Experience Brian C. Moyer International Workshop on Household Income, Consumption, and Full Accounting.
1 CHAPTER 5 Interest Rate Determination © Thomson/South-Western 2006.
Economics 202 Principles Of Macroeconomics Lecture 10 Investment, Savings and the Real Interest Rate The role of the Government Savings and Investment.
Actuarial Measures of US Household Income and Wealth from Defined Benefit Pension Plans By Marshall Reinsdorf for presentation at the UNECE Group of Experts.
124 Aggregate Supply and Aggregate Demand. 125  What is the purpose of the aggregate supply-aggregate demand model?  What determines aggregate supply.
Principles of Macroeconomics Lecture 2 CONSUMPTION AND INVESTMENT BUSINESS CYCLES AND AGGREGATE DEMAND.
CONFIDENTIAL AND PROPRIETARY. Permission to reprint or distribute any content from this presentation requires the written approval of Standard & Poor’s.
Chapter 27 Basic Macroeconomic Relationships. Income- Consumption-Saving Links Let’s introduce some assumptions: 1. Two-sector economy: households and.
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 12: Inflation and the Price Level 1.Explain how the.
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Business Cycles, Unemployment, and Inflation 6.
Business Cycles, Unemployment, and Inflation 9 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Effects of inflation on firms increases costs of production exports less competitive makes it harder to reinvest makes planning more difficult encourages.
In 1997 the bank of england gained operational independence to set monetary policy. Their recent policy has put interest rates at their lowest in histroy.
Chapter 15 Economics of Aging (c) 2005 The McGraw-Hill Companies, Inc. All rights reserved.
THE ECONOMIC OUTLOOK FOR INVESTORS AND BUSINESS DECISION MAKERS Dr. Mark G. Dotzour Chief Economist Real Estate Center at Texas A&M University College.
Macro Review Day 3. The Multiplier Model 28 The Multiplier Equation Multiplier equation is an equation that tells us that income equals the multiplier.
Real Sector Division IMF Statistics Department The views expressed herein are those of the authors and should not necessarily be attributed to the IMF,
AGGREGATE DEMAND. Aggregate Demand (AD) Shows the amount of Real GDP that the private, public and foreign sector collectively desire to purchase at each.
Copyright ©2014 Pearson Education, Inc. All rights reserved.5-1 Current account balance as a percent of GDP, Sources: Balance on current account:
Regional Pension Workshop
Revised September 12, 2016.
Personal Saving Rate Delayed Consumption
Personal Saving Rate Delayed Consumption
Economic & Revenue Outlook
23 FINANCE, SAVING, AND INVESTMENT.
Macro Free Responses Since 1995
Item 15: Stock and Flow accounts
Item 15: Stock and Flow accounts
Fiscal and Economic Issues
7 FINANCE, SAVING, AND INVESTMENT. 7 FINANCE, SAVING, AND INVESTMENT.
What is the GDP?.
8 Basic Macroeconomic Relationships.
Personal Saving Rate Delayed Consumption
Personal Saving Rate Delayed Consumption
June 2002 NATIONAL ECONOMY Part 1
Presentation transcript:

Alternative Measures of Personal Saving By: Maria G. Perozek* and Marshall B. Reinsdorf** Survey of Current Business 82 (April 2002): 13-24. *Federal Reserve Board **Bureau of Economic Analysis

Recent changes affecting household saving, wealth Dramatic stock market rise (1995 - March 2000) and fall (March 2000 - present). Large changes in net worth, mostly reflecting holding gains. Marked decline in personal saving from 8.7 percent in 1992 to 2.3 percent in 2001.

Interpreting Personal (household) saving Issues with sector definitions Defined benefit pension plans large holding gains can make the plan “over funded,” meaning that the employer is not required to contribute to the plan. DB plans explain about 1 percentage point of the drop.

Consumer durable goods BEA has measures of consumer durables stocks and net acquisition, based on perpetual inventory model. Part of decline in saving rate reflected net acquisition of durables

Effect of inflation Inflation was mild in USA during 1990s Because households net lenders, inflation causes saving to be overstated. Compared with early 1980s, effect is about 2 percentage points.

Capital gains taxes Capital gains are excluded from disposable income but taxes are treated as current taxes. Growth in capital gains taxes accounts for about 1 percentage point.

Measures of wealth accumulation