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Private Saving Rates and Macroeconomic Uncertainty: Evidence from Spanish Regional Data

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  • Roberto Bande
  • Dolores Riveiro

    (GAME-IDEGA, University of Santiago de Compostela)

Abstract

The aftermath of the recent financial crisis has been followed by increasing saving rates, which may well reflect precautionary behaviour of households. In spite of a broad agreement on the theoretical implications of uncertainty on saving rates, empirical work has not yet reached a consensus on which is the most reliable measure of uncertainty. In this paper we empirically test the precautionary saving theory and explore different measures of macroeconomic uncertainty, using Spanish regional data for the period 1980-2007. Our results suggest that part of the recent increase in saving rates is related to a precautionary motive and that increased uncertainty causes greater savings rates. Moreover, our results also suggest that, in Spain, the unemployment rate is a relevant variable as a measure of future income uncertainty.

Suggested Citation

  • Roberto Bande & Dolores Riveiro, 2013. "Private Saving Rates and Macroeconomic Uncertainty: Evidence from Spanish Regional Data," The Economic and Social Review, Economic and Social Studies, vol. 44(3), pages 323-349.
  • Handle: RePEc:eso:journl:v:44:y:2013:i:3:p:323-349
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    1. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1376-4 is not listed on IDEAS
    2. Aneta Maria Kłopocka & Tomasz Kopczyński & Grażyna Lenicka-Bajer, 2014. "Financial Situation And Attitudes Towards Saving In Polish Society:Evidence From Micro Data," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 476-486, May.
    3. Lugilde, Alba & Bande, Roberto & Riveiro, Dolores, 2016. "Precautionary saving in Spain during the Great Recession: evidence from a panel of uncertainty indicators," MPRA Paper 72436, University Library of Munich, Germany.
    4. José Francisco Bellod Redondo, 2014. "El impacto de la crisis en el deterioro alimentario en España," Contribuciones a la Economía, Grupo Eumed.net (Universidad de Málaga), issue 2014-04, July.
    5. Lugilde, Alba & Bande, Roberto & Riveiro, Dolores, 2017. "Precautionary Saving: a review of the theory and the evidence," MPRA Paper 77511, University Library of Munich, Germany.
    6. Shida, Yoshisada, 2015. "Forced Savings in the Soviet Republics: Re-examination," RRC Working Paper Series 54, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    7. Roberto Bande & Dolores Riveiro, 2012. "The Consumption-Investment-Unemployment Relationship in Spain: An Analysis with Regional Data," Documentos de trabajo - IRENe 0003, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.

    More about this item

    Keywords

    taxation; fiscal sociology;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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