data.savings: International Life-Cycle Savings and Disposable Income

In desk: Didactic Econometrics Starter Kit

International Life-Cycle Savings and Disposable Income

Description

This data set describes the savings behavior of 50 countries in 1960-1970. The data set includes demographical variables as well as variables on disposable income.

Usage

data.savings

Format

A data frame with 50 observations on the following five variables.

sr	ratio of the country's private savings to its disposable income.
pop15	share of the country's population under 15.
pop75	share of the country's population over 75.
dpi	country's real per capita disposable income (in dollar).
ddpi	growth rate of the country's disposable income per capita (in percent).

Details

Under the life-cycle savings hypothesis as developed by Franco Modigliani, the savings ratio (aggregate personal saving divided by disposable income) is explained by per-capita disposable income, the percentage rate of change in per-capita disposable income, and two demographic variables: the percentage of population less than 15 years old and the percentage of the population over 75 years old. The data are averaged over the decade 1960-1970 to remove the business cycle or other short-term fluctuations.

In Auer et al. (2023, Chaps. 9, 10 & 12) the data set is used to illustrate the econometric analysis of a multivariate linear regression model.

Source

R package datasets (object LifeCycleSavings).

References

Auer, L.v., Hoffmann, S. & Kranz, T. (2023): Ökonometrie - Das R-Arbeitsbuch, 2nd ed., Springer-Gabler (https://www.oekonometrie-lernen.de).

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