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The cultural origin of saving behavior.


ABSTRACT: Traditional economic interpretations have not been successful in explaining differences in saving rates across countries. One hypothesis is that savings respond to cultural specific social norms. The accepted view in economics so far is that culture does not have any effect on savings. We revisit this evidence using a novel dataset, which allows us to study the saving behavior of up to three generations of immigrants in the United Kingdom. Against the backdrop of existing evidence, we find that cultural preferences are an important explanation for cross-country differences in saving behavior, and their relevance persists up to three generations.

SUBMITTER: Costa-Font J 

PROVIDER: S-EPMC6135367 | biostudies-literature | 2018

REPOSITORIES: biostudies-literature

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The cultural origin of saving behavior.

Costa-Font Joan J   Giuliano Paola P   Ozcan Berkay B  

PloS one 20180912 9


Traditional economic interpretations have not been successful in explaining differences in saving rates across countries. One hypothesis is that savings respond to cultural specific social norms. The accepted view in economics so far is that culture does not have any effect on savings. We revisit this evidence using a novel dataset, which allows us to study the saving behavior of up to three generations of immigrants in the United Kingdom. Against the backdrop of existing evidence, we find that  ...[more]

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