Do the rich save more in Canada?

In studying the relationship between saving rates and lifetime incomes, the appropriate saving concept is active saving (or the “true” saving intention.) An important feature of the FAMEX is that it contains two measures of household active saving. [...] In summary there are reasons to believe that the ”income minus consumption” measure in the FAMEX is superior to those in the CEX (where the income data is not ideally suited to this purpose) and PSID (in which total expenditure must be imputed), and the FAMEX contains a second measure of annual active saving that can be exploited in a number of ways (which we outline below).2 There are 10085 respo [...] For example, focusing on the full sample and the (∆A)/Y saving measure, median saving rates for 40 to 49 year old households range from 0 percent in the lowest income quintile to 16 percent in the highest quintile; the corresponding numbers are -6.3 percent to 27.4 % when the (Y − C)/Y measure of saving is used. [...] The first three columns of Table 3 (on the left) give results using the education of the head and spouse as instruments for lifetime income. [...] The last three columns of Table 3 (on the right) give results using nondurable consumption as the instrument (with saving measures based on (Y − C)/Y , (∆A)/Y and pooling the two.) These results are summarized in the right panel of Figure 3. The left panel of Figure 3 9 also summarizes results using nondurable consumption as the instrument, but for the full sample.