Dissaving

Dissaving is a negative saving. This is a consumption in excess of current income, which is financed out of past income (wealth) or out of anticipated future income by borrowing. 

Dissaving starts when disposable income decreases to a level called break-even income. Break-even income - the level of disposable income at which households consume all their income and to save none of it. 

In macroeconomics, the maximum level of dissavings is equal to the autonomous consumption at the disposable income equal to zero.

Households net assets affects their ability to dissave. Households can dissave by consuming loans when they have positive net assets that can be used as a collateral. Households with negative net assets find dissaving difficult; lending to them is increasingly risky as their net assets falls.

Government dissaving

Government's real dissaving is a real budget deficit, e.i. when government expenditures exceed revenue.
If government's net public investment=0, then Government's real dissaving can be calculated as: 
(Dt-Dt-1)/Pt=Tt-[Gt+Vt+rt-1*(Dt-1/Pt)]<0, 
where Dt - liability of government at time t, the same as public debt,
Dt-Dt-1 - amount of debt issue during period t,
Pt - price level at time t,
Tt - real taxes during period t,
Vt - real transfers during period t,
r- interest rate at time t.

Further reading

1. B. Douglas Bernheim (1987). "Dissaving after Retirement: Testing the Pure Life Cycle Hypothesis". Issues in Pension Economics (p. 237 - 280)
2. George Garvy (Oct., 1948). "The Role of Dissaving in Economic Analysis". Journal of Political Economy Vol. 56, No. 5, pp. 416-427.
3. Keiko Murata (March 2018). “Dissaving by the elderly in Japan: Empirical evidence from survey data”. ESRI Discussion Paper Series No.346.

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