Greater opportunities to borrow money in various ways provided households with greater freedom to realize their plans and satisfy their needs, which helped create a higher rate of growth during the period.

One decisive factor for our being able to plan our lives as we wish is the possibility of borrowing and saving: education, cars, homes are just a few of the costly items that most people can afford only by borrowing money. A system where individuals have to save up for education or a home would most probably delay the realization of these plans, an involuntary delay. Since the late 1970s opportunities to borrow money have increased, including more comprehensive student loans and the deregulation of the mortgage market, all of which has made it easier for households to satisfy their needs and wishes.

Influential economic theory has long assumed that the distribution of income and wealth in society does not affect consumption in any substantial way, which is refuted by the findings in this dissertation. The results show that the group with negative net wealth, that is, households where debts are greater than assets, grew during the 1980-2000 period, and this, in turn, has led to a higher rate of growth. Furthermore, the findings show that the positive effect on consumption is probably due to the relatively high income of the group. In other words, this underlines the importance of studying the respective distribution of income and net wealth over time, and moreover separately, since types of assets have extremely different effects on consumption behavior.

The distribution of income and wealth, which has previously been considered of little theoretical importance, proves to be of considerable significance in understanding developments in consumption. MĂ„rten Bjellerup’s dissertation is the first to target this subject, and it indicates that further pursuit of the issue is of great theoretical and practical interest, to economists and to politicians.

MÄrten Bjellerup comes from Malmö and now lives in VÀxjö. He works as a teacher and researcher at the School of Management and Economics, VÀxjö University.

The dissertation Essays on Consumption: Aggregation, Asymmetry, and Asset Distributions will be publicly defended on September 9, 2005.

Contact: MĂ„rten Bjellerup, phone: +46 470-70 84 10 or cell phone: +46 709-698888, e-mail:

Order the book from: Kerstin Brodén, VÀxjö University Press, phone: +46 470-70 82 67 or e-mail: