The long-run relation between the personal savings rate and consumer sentiment

Bradley T. Ewing, James E. Payne

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

This study examined the long run relationship between the personal savings rate and the index of consumer sentiment in the United States over the 1959-1997 period using cointegration analysis. We find that consumer sentiment and the personal savings rate share a long run equilibrium. The results suggest that households reduce their savings rate when consumer sentiment is high, but the two variables do not drift arbitrarily far apart. The results have implications for long term savings plans and are particularly important for financial counselors and planners.

Original languageEnglish
Pages (from-to)89-96
Number of pages8
JournalJournal of Financial Counseling and Planning
Volume9
Issue number1
StatePublished - 1998

Keywords

  • Economic model
  • Economic well-being
  • Saving

Fingerprint Dive into the research topics of 'The long-run relation between the personal savings rate and consumer sentiment'. Together they form a unique fingerprint.

Cite this