The overall objective of my research is to gain a better understanding of how households view their future and make decisions about saving and borrowing. The objective is motivated by the increasing concern for the standard of living of future generations of elderly and by the so-called debt crisis which appeared in many European countries in the beginning of the nineties, characterised by a large number of households with debt problems.
I wish to study the effects of psychological variables on
household saving and borrowing behaviour. I will also address methodological challanges related to the studies of household decision making. To achieve this goal, I will use panel data available at CentER (the VSB-data) as well as collecting qualitative and quantitative data myself. All the variables in focus are measured by multiple items, and the hypotheses will be analysed by using structural equations modelling.