The aim of this study is to answer the following questions: “What are the key qualitative and quantitative facts about household savings in Germany?”, “Why do Germans save?”, and “How do Germans save?” We want to discover what assets households choose when investing their savings. Finally we investigate the factors influencing the households’ decision of whether to invest in stocks. This study unfolds as follows. Section 2 gives a general overview of the SAVE survey by summarizing the existing waves of SAVE and reviewing the questionnaire with a particular focus on the SAVE 2005 survey. In addition, the section checks the data quality with respect to nonresponse problems, the quality of responses, and the representativeness of the survey. Sections 3 and 4 are devoted to the analysis of the SAVE 2003 and 2005 data. The savings behavior of the households interviewed is at the core of Section 3. Section 4 investigates the asset choice behavior with a particular focus on the stockholding decision of households. Section 5 summarizes and concludes.
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