Saving from Permanent and Transitory Income. The Case of Polish Households
AbstractThe paper analyses the impact of income uncertainty on household saving. Using a panel of Polish households for 1997-2000 we decompose uncertainty of household income into a variance of shocks to permanent income and a variance of shocks to transitory income. Then we regress households' savings onthe estimated measures of income uncertainty controlling for demographicand social variables. Our empirical results indicate that the average variances of permanent and transitory income of Polish households do not differ much. Both measures of income uncertainty are statistically significant in predicting saving. The permanent income uncertainty affects savings more than the uncertainty of transitory income. A significant part of households' saving in Poland may be of precautionary, buffer-stock character. This paper is the CHER (Consortium of the Household Panels for European Socio-economic Research) Working Paper, 2003, No. 15, presented at the 28th General Conference of the International Association for Research in Incomeand Wealth in Cork, Ireland in 2004 and at the CHER workshop in Spain, 2002. It is a companion paper to: Uncertainty of Households' Income in the European Union Countries and Poland., co-authored by B. Liberda, B. GĂÂłrecki andM. PĂ„Â™czkowski, that was published in EMERGO, 4(38)/2003 and appeared also as CHER Working Paper, 2003, No. 13, within the program Improving the Human Research Potential and the Socio-Economic Knowledge Base, supportedby the European Commission. In preparing both papers we benefited from the grant by the Polish NationalCommittee for Scientific Research (KBN) for years 2001.2003, No. 5.1.102C 051
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Faculty of Economic Sciences, University of Warsaw in its journal Ekonomia journal.
Volume (Year): 14 (2006)
Issue (Month): ()
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piotr Kochanski).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.