Resource title

Households' saving and debt in Italy

Resource image

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Resource description

We review savings trends in Italy, summarizing available empirical evidence on Italians motives to save, relying on macroeconomic indicators as well as on data drawn from the Bank of Italy s Survey of Household Income and Wealth from 1984 to 2004. The macroeconomic data indicate that households saving has dropped significantly, although Italy continues to rank above most other countries in terms of saving. We then examine with microeconomic data four indicators of household financial conditions: the propensity to save, the proportion of households with negative savings, the proportion of households with debt, and the proportion of households that lack access to formal credit markets. By international comparison, the level of debt of Italian households and default risk are relatively low. But in light of the deep changes undergone by the Italian pension system, the fall in saving is a concern, particularly for individuals who entered the labor market after the 1995 reform and who have experienced the largest decline in pension wealth.

Resource author

Tullio Jappelli, Mario Padula

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25531

Resource license

Adapt according to the presented license agreement and reference the original author.