Savings and consumption decisions will be more efficient if households have the opportunity to borrow and save as they wish. This in turn would lead to more consumption, and therefore overall growth. The accuracy of this prediction is clearly borne out by developments in Sweden from 1980 to 2000, which is shown in Mårten Bjellerup’s dissertation Essays on Consumption: Aggregation, Asymmetry, and Asset Distributions. Greater opportunities to borrow money in various ways provided households with greater freedom to realize their plans and satisfy their needs, which helped create a higher rate of growth during the period.
One decisive factor for our being able to plan our lives as we wish is the possibility of borrowing and saving: education, cars, homes are just a few of the costly items that most people can afford only by borrowing money. A system where individuals have to save up for education or a home would most probably delay the realization of these plans, an involuntary delay. Since the late 1970s opportunities to borrow money have increased, including more comprehensive student loans and the deregulation of the mortgage market, all of which has made it easier for households to satisfy their needs and wishes.
Influential economic theory has long assumed that the distribution of income and wealth in society does not affect consumption in any substantial way, which is refuted by the findings in this dissertation. The results show that the group with negative net wealth, that is, households where debts are greater than assets, grew during the 1980-2000 period, and this, in turn, has led to a higher rate of growth. Furthermore, the findings show that the positive effect on consumption is probably due to the relatively high income of the group. In other words, this underlines the importance of studying the respective distribution of income and net wealth over time, and moreover separately, since types of assets have extremely different effects on consumption behavior.
Kerstin Brodén | alfa
Amputees can learn to control a robotic arm with their minds
28.11.2017 | University of Chicago Medical Center
The importance of biodiversity in forests could increase due to climate change
17.11.2017 | Deutsches Zentrum für integrative Biodiversitätsforschung (iDiv) Halle-Jena-Leipzig
Tiny pores at a cell's entryway act as miniature bouncers, letting in some electrically charged atoms--ions--but blocking others. Operating as exquisitely sensitive filters, these "ion channels" play a critical role in biological functions such as muscle contraction and the firing of brain cells.
To rapidly transport the right ions through the cell membrane, the tiny channels rely on a complex interplay between the ions and surrounding molecules,...
The miniaturization of the current technology of storage media is hindered by fundamental limits of quantum mechanics. A new approach consists in using so-called spin-crossover molecules as the smallest possible storage unit. Similar to normal hard drives, these special molecules can save information via their magnetic state. A research team from Kiel University has now managed to successfully place a new class of spin-crossover molecules onto a surface and to improve the molecule’s storage capacity. The storage density of conventional hard drives could therefore theoretically be increased by more than one hundred fold. The study has been published in the scientific journal Nano Letters.
Over the past few years, the building blocks of storage media have gotten ever smaller. But further miniaturization of the current technology is hindered by...
With innovative experiments, researchers at the Helmholtz-Zentrums Geesthacht and the Technical University Hamburg unravel why tiny metallic structures are extremely strong
Light-weight and simultaneously strong – porous metallic nanomaterials promise interesting applications as, for instance, for future aeroplanes with enhanced...
An interdisciplinary group of researchers interfaced individual bacteria with a computer to build a hybrid bio-digital circuit - Study published in Nature Communications
Scientists at the Institute of Science and Technology Austria (IST Austria) have managed to control the behavior of individual bacteria by connecting them to a...
Physicists in the Laboratory for Attosecond Physics (run jointly by LMU Munich and the Max Planck Institute for Quantum Optics) have developed an attosecond electron microscope that allows them to visualize the dispersion of light in time and space, and observe the motions of electrons in atoms.
The most basic of all physical interactions in nature is that between light and matter. This interaction takes place in attosecond times (i.e. billionths of a...
11.12.2017 | Event News
08.12.2017 | Event News
07.12.2017 | Event News
11.12.2017 | Physics and Astronomy
11.12.2017 | Earth Sciences
11.12.2017 | Information Technology