Are the savings of Dutch households optimal?
We also find that many Dutch households have too few liquid assets to be able to cushion the effects of an unexpected fall in income. The data shows that most Dutch household wealth is held in their own homes, which is illiquid. Finally, we note that many older households
The optimum wealth that we present is not intended as a normative recommendation; it is not advice to individual households. Our result depends on assumptions about preferences, parameters and the model choices made. Actual optimum wealth is uncertain and will be different for every household. In the memorandum we include sensitivity analyzes based on different assumptions and parameter values.