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Jahrbücher für Nationalökonomie und Statistik

Journal of Economics and Statistics

Editor-in-Chief: Winker, Peter

Ed. by Büttner, Thiess / Riphahn, Regina / Smolny, Werner / Wagner, Joachim

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Volume 238, Issue 6


Saving Behavior and Housing Wealth Evidence from German Micro Data

Sören Gröbel / Dorothee Ihle
Published Online: 2018-08-24 | DOI: https://doi.org/10.1515/jbnst-2017-0118


Housing property is the most important position in a household’s wealth portfolio. Even though there is strong evidence that house price cycles and saving patterns behave synchronously, the underlying causes remain controversial. The present paper examines if there is a wealth effect of house prices on savings using household-level panel data from the German Socio-Economic Panel for the period 1996-2012. We find that young homeowners decrease their savings in response to unanticipated house price shocks, whereas old households hardly respond to house price changes. Although effects are relatively low in magnitude, we interpret this as evidence of a housing wealth effect.

Keywords: housing wealth; saving behavior; Germany

JEL Classification: D91; E21; R31


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About the article

Received: 2017-06-12

Accepted: 2018-04-26

Revised: 2018-04-23

Published Online: 2018-08-24

Published in Print: 2018-10-25

Citation Information: Jahrbücher für Nationalökonomie und Statistik, Volume 238, Issue 6, Pages 501–539, ISSN (Online) 2366-049X, ISSN (Print) 0021-4027, DOI: https://doi.org/10.1515/jbnst-2017-0118.

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