A Note on the Savings Rate

Article type: Research Article

Authors: Heien, Dale^{a; *} | Nuckton, Carole^a

Affiliations: [a] University of California, Davis

Correspondence: [*] Address correspondence to Professor Dale Heien Department of Agricultural Economics, University of California, Davis, California.

Abstract: This paper deals with the manner in which personal savings are computed in the National Income and Product Accounts. In particular it focuses on the treatment of the imputed flow of services from the stock of durables, especially housing. This paper presents an alternative estimate of personal savings based on a household cash flow concept. The estimate is then compared with the NIPA and the FRB estimates of personal savings. The new computed rate shows a much sharper decline than the NIPA or FRB rates.

DOI: 10.3233/JEM-1986-14107

Journal: Journal of Economic and Social Measurement, vol. 14, no. 1, pp. 87-89, 1986