Abstract
AbstractThis paper analyses determinants of household savings in a model based on an extension of the disequilibrium savings theory. These extensions follow from the life-cycle and permanent-income theories. Based on panel data for 14 countries spanning the period 2000–2018, fixed-effect least squares and two-stage least squares estimation procedures were used. In line with previous studies, there is strong and robust evidence for the hypotheses of disequilibrium savings theory, specifically, positive effects of unanticipated income changes, unanticipated inflation and the lagged savings rate. There is also robust evidence for the income uncertainty hypothesis that uncertainty has a positive effect on savings. The analysis presents some evidence that social security suppresses savings, but finds no significant effects on the interest rate or old-age dependency ratio. Unexpectedly, the participation rate of the elderly has a significant positive effect in some specifications. These findings contribute to the debate on whether and how governments can influence saving behavior.
Publisher
Springer Science and Business Media LLC
Subject
General Economics, Econometrics and Finance,Economics and Econometrics
Reference47 articles.
1. Aizenman, J., Chinn, M., & Ito, H. (2016). Monetary policy spillovers and the trilemma in the new normal: Periphery country sensitivity to core country conditions. Journal of International Money and Finance, 68, 298–330.
2. Aizenman, J., Chinn, M., & Ito, H. (2017). Balance sheet effects on monetary and financial spillovers: The east Asian crisis plus 20. Journal of International Money and Finance, 74, 258–282.
3. Aizenman, J., Cheung, Y.-W., & Ito, H. (2019). The interest rate effect on private saving: Alternative perspectives. Journal of International Commerce, Economics and Policy, 10(1), 1–37.
4. Ando, A., & Modigliani, F. (1963). The “life-cycle” hypothesis of saving: Aggregate implications and tests. American Economic Review, 53(1), 55–84.
5. Arno, P. S., Sohler, N., Viola, D., & Schechter, C. (2009). Bringing health and social policy together: The case of the earned income tax credit. Journal of Public Health Policy, 30(2), 198–207.
Cited by
2 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献