Determinants of Household Saving: Evidence from Slovakia

The paper focuses upon determinants of household savings in Slovakia applying quarterly data 1995 Q1 – 2015 Q1. The results contradict to the Life-Cycle Hypothesis as positive relation between saving rate and dependency ratio was identified. Applying ARDL framework we identified the following relati...

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Bibliographic Details
Published in:Ekonomický časopis 2015, Vol.63 (8), p.837-852
Main Author: Pitoňáková, Renáta
Format: Article
Language:English
Subjects:
Micro-Economics
National Economy
Online Access:Get full text
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Summary:The paper focuses upon determinants of household savings in Slovakia applying quarterly data 1995 Q1 – 2015 Q1. The results contradict to the Life-Cycle Hypothesis as positive relation between saving rate and dependency ratio was identified. Applying ARDL framework we identified the following relations. In the long-run, rising property income and dependency ratio increase household saving, while higher unemployment has a negative influence. In the short-run, savings are positively impacted by property income, dependency ratio, unemployment and saving rate from previous quarter. The speed of adjustment is fast, while about 60% of disequilibrium in the previous quarter will be corrected in the current quarter.
ISSN:0013-3035