Indexation and household saving behavior : Some empirical evidence

Abstract

This paper attempts to shed some light on the empirically unsolved issues concerning the impact on the saving behavior of households of the introduction of indexed financial assets. Quite suitable data from Finland are utilized, and empirical findings support the view that the hedging ability of indexed assets can affect the portfolio decision. The hypothesis that indexation of financial assets leave the savings ratio unaltered could, however, not be rejected.