Is There Evidence of Loss Aversion in Saving Behaviors in Spain?

Journal of Family and Economic Issues, Forthcoming

30 Pages Posted: 15 Nov 2016

See all articles by Patti Fisher

Patti Fisher

Virginia Polytechnic Institute & State University - Consumer Studies

Date Written: November 9, 2016

Abstract

This study uses data from the 2005 Survey of Household Finances to investigate the existence of loss aversion in household saving behavior in Spain. Loss aversion refers to an asymmetry in saving behavior in response to increases and decreases in income, where income decreases have a greater effect than increases. Evidence of loss aversion in household saving behaviors in the U.S. has been presented in previous research, and evidence of loss aversion in saving has been found using aggregate data from Europe, but to date there are no household level studies on loss aversion and saving behaviors in Europe. The present results do not support the existence of loss aversion at the household level in Spain. The results indicate symmetry in the responses to positive and negative income changes, failing to provide support for loss aversion in household saving behaviors.

Keywords: loss aversion, saving behavior, household economics

JEL Classification: D14

Suggested Citation

Fisher, Patti, Is There Evidence of Loss Aversion in Saving Behaviors in Spain? (November 9, 2016). Journal of Family and Economic Issues, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2867095

Patti Fisher (Contact Author)

Virginia Polytechnic Institute & State University - Consumer Studies ( email )

240 Wallace Hall
Blacksburg, VA 24061
United States

HOME PAGE: http://sites.google.com/a/vt.edu/pattifisher/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
129
Abstract Views
990
Rank
397,606
PlumX Metrics