EXPLORATION IN SAVINGS BEHAVIOUR

This paper essays a reasonably comprehensive econometric analysis of the results of the 1953 sample Savings Survey of residents of the United Kingdom. Part I consists of a preliminary survey of the problem and methods of analysis and of a search for the key variables influencing individual saving patterns. In Part II two new theories of saving propounded by Modigliani and Brumberg and by Friedman are submitted to more specific testing. The Modigliani‐Brumberg theory is extended to cover variations in family size, and the implications of the Friedman hypothesis as to the role of assets as a reserve for emergencies are elucidated. A number of facets of these theories are submitted to test and their implications for the analysis of comprehensive and representative equations adumbrated.