Transcript Figure 15-2

PART SIX
SOURCES OF
INSTABILITY IN
THE PRIVATE
ECONOMY
Chapter 15
Instability in the
Private Economy:
Consumption
Behavior
Figure 15-1 Real Consumer Expenditure
and Its Three Components, 1960–2001
Figure 15-2
The Relation
Between Disposable
Income (YD),
Consumption
Spending (C), and
the Ratio of Saving
to Income (S/YD)
Source for bottom frame: U.S. Bureau of
Labor Statistics, Consumer Expenditure
Survey: Results from 1986, Washington, D.C.,
April 1988, Table 2.
Figure 15-3 Ratio of Personal Saving to
Disposable Personal Income (S/YD), Averages over
Business Cycles, 1898–2001
Sources: 1897-99: Paul David and John Scadding, “Private Savings: Ultrarationality, Aggregation, and ‘Denison’s Law’,”
Journal of Political Economy (March/April 1974). 1900-32: Historical Statistics of the United States, Series F 639 and F
9. 1933-2001: National Income and Product Accounts.
Figure 15-4 The Permanent-Income Hypothesis of
Consumption and Saving
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Figure 15-5
The Behavior of
Consumption,
Saving, and
Assets under
the Life-Cycle
Hypothesis
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Figure 15-6
Consumption,
Saving, and
Assets under
the Life-Cycle
Hypothesis
When There Is
an Initial Stock
of Assets
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International Perspective Why Do Some
Countries Save So Much?
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Figure 15-7 The Household Saving Rate and the Ratio
of the S&P 500 Stock Market Index to Nominal GDP,
1970–2001
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Figure 15-8 Household Saving in the NIPA and
Flow of Funds Accounts, 1960–2001
Source: National Income and Product Accounts and Flow of Funds Accounts.
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Figure 15-9 FFA and Gains-Inclusive
Saving Rates
Source: National Income and Product Accounts and Flow of Funds Accounts.
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