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.
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.
- Content Type Journal Article
- Category Original Paper
- Pages 1-11
- DOI 10.1007/s10834-012-9290-7
- Authors
- Patti J. Fisher, Department of Apparel, Housing, and Resource Management, College of Liberal Arts and Human Sciences at Virginia Tech, 209 Wallace Hall, Blacksburg, VA 24061, USA
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476