datasets (version 3.4.1)

LifeCycleSavings: Intercountry Life-Cycle Savings Data

Description

Data on the savings ratio 1960--1970.

Usage

LifeCycleSavings

Format

A data frame with 50 observations on 5 variables.

[,1]	sr	numeric	aggregate personal savings
[,2]	pop15	numeric	% of population under 15
[,3]	pop75	numeric	% of population over 75
[,4]	dpi	numeric	real per-capita disposable income

Details

Under the life-cycle savings hypothesis as developed by Franco Modigliani, the savings ratio (aggregate personal saving divided by disposable income) is explained by per-capita disposable income, the percentage rate of change in per-capita disposable income, and two demographic variables: the percentage of population less than 15 years old and the percentage of the population over 75 years old. The data are averaged over the decade 1960--1970 to remove the business cycle or other short-term fluctuations.

References

Sterling, Arnie (1977) Unpublished BS Thesis. Massachusetts Institute of Technology.

Belsley, D. A., Kuh. E. and Welsch, R. E. (1980) Regression Diagnostics. New York: Wiley.

Examples

require(stats); require(graphics)
pairs(LifeCycleSavings, panel = panel.smooth,
      main = "LifeCycleSavings data")
fm1 <- lm(sr ~ pop15 + pop75 + dpi + ddpi, data = LifeCycleSavings)
summary(fm1)