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
Innovative genetic tests for children with developmental disorders and epilepsy
11.07.2018 | Christian-Albrechts-Universität zu Kiel
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05.07.2018 | European Geosciences Union
For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.
To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...
For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.
Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...
Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.
A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...
Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.
"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....
Ultra-short, high-intensity X-ray flashes open the door to the foundations of chemical reactions. Free-electron lasers generate these kinds of pulses, but there is a catch: the pulses vary in duration and energy. An international research team has now presented a solution: Using a ring of 16 detectors and a circularly polarized laser beam, they can determine both factors with attosecond accuracy.
Free-electron lasers (FELs) generate extremely short and intense X-ray flashes. Researchers can use these flashes to resolve structures with diameters on the...
13.07.2018 | Event News
12.07.2018 | Event News
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13.07.2018 | Event News
13.07.2018 | Materials Sciences
13.07.2018 | Life Sciences