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The West German Bausparkassen system consisits of savings and loan institutions providing exclusively to their savers loans toward purchasing a home. Thus, inflows correspond to outflows. The authors provide an analysis of the impacts of the Bausparkassensystem and its governmental subsidization on dedicated and general savings. Within cross-section microanalysis and a time-series macroanalysis they demonstrate the extent of savings activities in the system and the microstructure of system participation; the government subsidization heavily influences participation, but nevertheless participation also extends to housholds not eligible for subsidies; and that the very existence of the system contributes to overall saving activities. The paper is organized as follows. Section 2 describes the institutional working of the West German Bausparkassen system, in particular the government subsidies involved. Section 3 employes the 1978 and 1983 West German Income and Expenditure Survey ("Einkommens- und Verbrauchsstichprobe") for a microeconometric analysis of the proportion of wealth allocated to dedicated savings. Section 4 takes an aggregate view and analyzes time-series data to exploit the intertemporal variation of interest rates and government subsidies. The paper finishes with a short summery of conclusions.
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(Einkommens- und Verbrauchsstichprobe)
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Einkommens- und Verbrauchsstichprobe-Bibliography
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Do Dedicated Savings Increase Personal Savings and Housing Consumption? An Analysis of the German Bausparkassen System
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Bibsonomy
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In Journal of Public Economics, 44, 265-297, 1991
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Einkommens- und Verbrauchsstichprobe (EVSti)
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1991
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