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We study the role of household saving behaviour, of individual motives for saving and that of perceived liquidity constraints on household finances in the 15 Euro Area countries. The empirical analysis is based on the Household Finance and Consumption Survey (HFCS), a new harmonized data set collecting detailed information on wealth holdings, consumption and income at the household level. We find evidence of some degree of homogeneity across countries with respect to saving preferences and the relative importance of alternative motives for saving. In addition we find a more heterogeneous impact of credit constraints, that are perceived to be binding for specific groups of respondents and geographic regions. Both household characteristics and institutional macroeconomic variables are significant and economically important determinants of household saving preferences and of the credit constraints they face. These findings have relevant policy implications if interpreted in light of the recent financial crisis, the country-specific institutional settings, and the different degree of development of formal lending channels.Jel-Classification: C8; D12; D14; D91

The paper extends and replicates part of the analysis by Barsky, Juster, Kimball, and Shapiro (1997), which exploits hypothetical choices among di¤erent consumption streams to infer intertemporal substitution elasticities and rates of time preference. We use a new and much larger dataset than Barsky et al. Furthermore, we estimate structural models of intertemporal choice, while parameterizing the parameters of interest as a function of relevant individual characteristics. We also consider "behavioral" extensions, like habit formation. Models with habit formation appear to be superior to models with intertemporally additive preferences.Jel-Classi…cation: C5; C9; D9

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