Consumption and saving patterns in Switzerland: new evidence based on administrative tax data

Abstract

Abstract We use administrative data on income and wealth of taxpayers in the canton of Bern to impute consumption based on the budget constraint. We validate the imputed consumption and use the panel data on consumption, income and wealth to provide stylized facts on consumption and saving patterns in Switzerland for the period 2002-2022. We document a large drop of the saving rate in the first ten years after retirement and show that 75% of permanent income shocks and 40% of transitory income shocks transmit to total consumption expenditures.