Saving function (economy)
A savings function is a behavioral equation and describes what the savings depend on. Depending on the theoretical assumptions, it describes the dependency of savings within a period on income or on the interest rate or on other variables.
The “ classic savings function” is the assumption that the recipients of wage incomes consume their entire income and do not save, while the profit earners save a large part of their income, simplifying everything.
Nicholas Kaldor distinguishes a savings rate of wage earners from one of profit earners, the latter being greater than the former. This means that the overall economic savings rate is lower, the lower the profit income in relation to national income (wage income plus profit income).
A function in which the amount of planned savings is determined by the interest rate is also referred to as a classic savings function .
- ^ RGD Allen: Macro-Economic Theory: A Mathematical Treatment . Macmillan, St. Martin's Press, London / Melbourne / Toronto 1968, pp. 30 .
- ↑ Fritz Söllner: The history of economic thinking . Springer, 2001, ISBN 3-540-41342-1 , pp. 246 .
- ^ Eckhard Hein : Money, Distribution Conflict and Capital Accumulation. Contributions to 'Monetary Analysis' . Palgrave Macmillan, 2008, ISBN 978-0-230-52157-5 , pp. 83, 103 .
- ^ Heinz-Dieter Hardes, Frieder Schmitz: Fundamentals of economics. Oldenbourg Wissenschaftsverlag, 2002, ISBN 3-486-25919-9 , p. 403 .