Economic Shocks and Savings Behavior by the Rural Poor
Using data from 587 marginalized cooperative member households in rural Mexico, this paper examines how household formal financial savings fluctuates with economic shocks and other relevant variables. Regression results show that negative shocks, income, wealth, formal credit, distance from a bank branch, percent of non-working members in a household, and education have a significant influence on formal financial savings. Results from quantile regression show that the impact of negative shocks on formal savings is only statistically significant in households with a high propensity to save. These precautionary savings households not only save more, but are inclined to withdraw savings to alleviate potentially adverse personal income trends associated with the shocks.
Volume (Year): 31 (2011)
Issue (Month): 4 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeong-Joon Lee & Yasuyuki Sawada, 2005.
"Precautionary Saving under LiquidityConstraints: Evidence from Rural Pakistan,"
CIRJE-F-377, CIRJE, Faculty of Economics, University of Tokyo.
- Lee, Jeong-Joon & Sawada, Yasuyuki, 2010. "Precautionary saving under liquidity constraints: Evidence from rural Pakistan," Journal of Development Economics, Elsevier, vol. 91(1), pages 77-86, January.
- Gourinchas, P.O. & Parker, J.A., 1997.
"Consumption Over the Life Cycle,"
9722, Wisconsin Madison - Social Systems.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 1999. "Consumption Over the Life Cycle," NBER Working Papers 7271, National Bureau of Economic Research, Inc.
- Gourinchas, Pierre-Olivier & Parker, Jonathan A, 2000. "Consumption Over the Life-Cycle," CEPR Discussion Papers 2345, C.E.P.R. Discussion Papers.
- George-Marios Angeletos, 2001. "The Hyberbolic Consumption Model: Calibration, Simulation, and Empirical Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 47-68, Summer.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00592. See general 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: (John P. Conley)
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.