NEWS / PRESS

March 6 2013: "Is real estate a liability for France ?"

The French Federation of Construction' review « Constructif » dedicated its March issue to the theme of French savings distribution. André Babeau, ex-President of the OEE Advisory Board, presents the broad categories of French funding. Didier Davydoff, director of the OEE, analyses the differences in savings behavior amongst large OECD countries; Florence Legros presents her studies which reveal that stocks are the least risky long term investment and should therefore be the privileged investment of pension funds. Karine Berger argues in favor of higher risk taking by wealthier households. Bernard Coloos, director of the French Federation of Construction's international and financial economic affairs highlights the wealth-creating aspect of real estate and defends property investment as a form of long term saving. In conclusion, the French Federation of Construction organised a conference on the theme "Is French real estate a liability for France ?". Participation to the conference also included Christian Eckert, general budget proctor at the Assemblée Nationale.

For more information on this topic: website of the review « Constructif », report of the conference

February 8, 2013:

OEE Conference: "Are Europeans lacking in financial literacy?"

The OEE organised a conference on Financial Literacy. This conference included the presentation and discussion of two studies recently conducted for the OEE:

• The number of households that hold shares directly or via investment funds changes dramatically across countries within Europe. However, among households that invest, the portion of shares held relative to these kinds of assets is very similar from one country to another. Using a sample of over 50s in 11 European countries, Tullio Jappelli (University of Naples Federico II) and Mario Padula (University "Ca' Foscari" of Venezia) attempt to explain this paradox. More specifically, they measure the impact of financial literacy and the "generosity" of country-specific retirement benefits on saving behaviour.

• Michael Haliassos and Nicola Fuchs-Schuendeln (Goethe University Frankfurt) work on a unique case of "experimental economics". They compare the saving and borrowing behaviours of those coming from East Germany with those from the West since the German reunification. They reveal a rapid convergence of households with the same socioeconomic characteristics even when there are differences in levels of financial literacy.

• Outside of country-specific institutional factors, does the absence of financial literacy explain the reluctance of savers with regard to listed shares, investment funds, unit-linked life insurance contracts and defined benefit and defined contribution pension plans? Can we explain the low number of households that are willing to take the risk of such investments considering that when such investments are made, they remain a relatively small percentage in comparison to other kinds of investments? Is the use of mortgages and consumer credit influenced by the same factors?

• What do we mean when we say "financial literacy"? Is it the ability to calculate compound interests and the general economic climate, as well as an understanding of companies? What is the cost of financial literacy? Can financial intermediaries compensate for the initial lack of financial literacy in their clients?

For more information: See the conference presentations by visiting Conferences

January 17, 2013:

The Economic Impact of Savings Tax

At the demand of the Fédération Bancaire Française, the OEE and IODS conducted a study on "The Economic Impact of Savings Tax". The FBF organised a debate on January 17, 2013, during which Didier Davydoff presented the results of the study. A roundtable debate, led by Jean Tricou, Director of the FBF's Investment Banking Department, covered the theme "Savings and the financing of the economy".

Members of the roundtable included:

Jacques de Larosière, President, OEE

Didier Davydoff, Director, OEE, and author of the study

Jacques Fournier, Director General of Banque de France's Directorate General Statistics

Pierre de Lauzun, Director General, FBF

For more information: For all the documents related to this meeting, go to Conferences