Average propensity to save

With savings rate is referred to in economics the proportion of savings on income. A distinction is made:

• Average savings rate of households, which is defined as the proportion of savings to disposable income.
• Macroeconomic savings rate, which indicates the ratio of the savings of the total economy ( households, enterprises and the State) in relation to gross domestic product.
• Marginal savings rate, which indicates the change in savings in a change in income. The savings rate is between 0 and 1 The marginal propensity to consume is then correspondingly the remaining share of the income, which is why 1 - savings rate is equal to the marginal propensity to consume.

In determining the savings savings benefits and net borrowings are netted. If the amount of net borrowing the amount of money savings of a certain sector ( per period ) that is spoken of negative savings rate.

Nicholas Kaldor recognized for the first time that the savings rate increases with income. Thus, for example, was in Germany in the first half of 2003 at Least earners a dissaving observed - the savings have therefore taken - while income rises, the proportion of the distance money continuously grew.

Savings rate, credit demand and economic

Is Although assumed in classical models assume that there should be an average height of the savings rate in order to provide the company capital investments, arises in macroeconomic viewing this assumption to be a fallacy out - because of the amount of the money savings of a result of the credit needs of the other.

Not " transfers to households have particularly stimulating effects when to liquidity or credit limited (so-called: if revenues are therefore issued completely - 2010, the Advisory Council on the Assessment of Overall Economic Development declared the stimulating effect on the economy at a savings rate of zero go - Ricardian ) households spending a higher income immediately and completely. "