Year: 2003
Author: Fuchs-Schündeln, Nicola, Schündeln, Matthias
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 209–219
Abstract
We analyze whether the savings behavior of East and West Germans after German reunification can be explained by predictions from a life cycle consumption model. The life cycle hypothesis gives predictions for consumption and savings over the life cycle for a given expected income profile, taking retirement into account. Yet, for the East German population the economic environment changed dramatically and unexpectedly after German reunification, causing a reassessment of life cycle income and risk. In an empirical analysis, we find that the differences in savings behavior of East and West German age cohorts are in line with the life cycle hypothesis.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.123.1.209
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 209–219
Published online: 2003-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 11