The Effects of Consumption Variability on Saving: Evidence from a Panel of Muscovite Households

Guariglia, Alessandra and Kim, Byung-Yong (2003) The Effects of Consumption Variability on Saving: Evidence from a Panel of Muscovite Households. Oxford Bulletin of Economics and Statistics, 65 (3). pp. 357-77. ISSN 0305-9049. (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1111/1468-0084.t01-1-00049

Abstract

Due to the high uncertainty characterizing them, transition economies provide an extraordinary opportunity to test the precautionary saving hypothesis. This paper represents an attempt to exploit this opportunity. We use a panel of 2,346 Muscovite households, over the 12 months of 1996, to construct two time-varying measures of consumption growth variability, which we use as proxies for households’ perceived uncertainty. We then regress household saving on these uncertainty variables using a GMM-system estimator. We find that both uncertainty measures generally have a positive and statistically significant effect on saving. This result, which is robust to the use of different measures of saving, supports the precautionary saving hypothesis

Item Type: Article
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: G.F. Green
Date Deposited: 06 Sep 2008 15:45
Last Modified: 11 Jul 2014 10:13
Resource URI: http://kar.kent.ac.uk/id/eprint/9483 (The current URI for this page, for reference purposes)
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