Determinants of Households’ Savings in Central, Eastern and Southeastern Europe
This paper uses data from the Euro Survey of the Oesterreichische Nationalbank (OeNB) for ten Central, Eastern and Southeastern European (CESEE) countries to analyze the saving behavior of CESEE households between 2010 and 2011. We investigate households’ decisions to save and their subsequent portfolio choices based on the life-cycle hypothesis, i.e. by analyzing sociodemographic determinants of saving, most notably age. Understanding households’ saving behavior is particularly relevant for CESEE countries to properly address public policy challenges related to promoting financial market development and financial stability. Our findings suggest that age as well as education and income drive the propensity to save and reveal that the hump-shaped relationship between age and savings as predicted by the life-cycle hypothesis holds for CESEE. Age also plays a role in households’ portfolio choices, with younger persons having a higher propensity to own life insurance, while older persons are more likely to have savings deposits.
Volume (Year): (2013)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: |
Phone: +43/1/404 20 7405
Fax: +43/1/404 20 7499
Web page: http://www.oenb.at
More information through EDIRC
|Order Information:|| Postal: Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria|
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.:
- Helmut Stix, 2011. "Euroization: what factors drive its persistence? Household data evidence for Croatia, Slovenia and Slovakia," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2689-2704.
- John Y. Campbell, 2006.
Journal of Finance,
American Finance Association, vol. 61(4), pages 1553-1604, 08.
- Mankiw, N. Gregory & Zeldes, Stephen P., 1991.
"The consumption of stockholders and nonstockholders,"
Journal of Financial Economics,
Elsevier, vol. 29(1), pages 97-112, March.
- Mankiw, N.G. & Zeldes, S.P., 1990. "The Consumption Of Stockholders And Non-Stockholders," Weiss Center Working Papers 23-90, Wharton School - Weiss Center for International Financial Research.
- N. Gregory Mankiw & Stephen P. Zeldes, 1990. "The Consumption of Stockholders and Non-Stockholders," NBER Working Papers 3402, National Bureau of Economic Research, Inc.
- Denizer, Cevdet & Wolf, Holger & Ying, Yvonne, 2002. "Household Savings in the Transition," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 463-475, September.
- Marjorie Flavin & Takashi Yamashita, 2002. "Owner-Occupied Housing and the Composition of the Household Portfolio," American Economic Review, American Economic Association, vol. 92(1), pages 345-362, March.
- Roche, Hervé & Tompaidis, Stathis & Yang, Chunyu, 2013. "Why does junior put all his eggs in one basket? A potential rational explanation for holding concentrated portfolios," Journal of Financial Economics, Elsevier, vol. 109(3), pages 775-796.
- Li L. Ong & Silvia Iorgova, 2008. "The Capital Markets of Emerging Europe; Institutions, Instruments and Investors," IMF Working Papers 08/103, International Monetary Fund.
- Kapteyn, Arie & Alessie, Rob & Lusardi, Annamaria, 1999.
"Explaining the wealth holdings of different cohorts : productivity growth and social security,"
Serie Research Memoranda
0038, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Kapteyn, Arie & Alessie, Rob & Lusardi, Annamaria, 2005. "Explaining the wealth holdings of different cohorts: Productivity growth and Social Security," European Economic Review, Elsevier, vol. 49(5), pages 1361-1391, July.
- Arie Kapteyn & R. Alessie & Annamaria Lusardi, 2003. "Explaining the wealth holdings of different cohorts: productivity growth and social security," Working Papers 01-03, Utrecht School of Economics.
- Lusardi, Annamaria & Mitchell, Olivia S., 2011.
"Financial literacy around the world: an overview,"
Journal of Pension Economics and Finance,
Cambridge University Press, vol. 10(04), pages 497-508, October.
- Annamaria Lusardi & Olivia S. Mitchell, 2011. "Financial Literacy around the World: An Overview," NBER Working Papers 17107, National Bureau of Economic Research, Inc.
- Annamaria Lusardi & Olivia S. Mitchell, 2011. "Financial Literacy Around the World: An Overview," CeRP Working Papers 106, Center for Research on Pensions and Welfare Policies, Turin (Italy).
- Luigi Pistaferri, 1998.
"Superior Information, Income Shocks and the Permanent Income Hypothesis,"
CSEF Working Papers
07, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Luigi Pistaferri, 2001. "Superior Information, Income Shocks, And The Permanent Income Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 465-476, August.
- Carroll, Christopher D, 1994.
"How Does Future Income Affect Current Consumption?,"
The Quarterly Journal of Economics,
MIT Press, vol. 109(1), pages 111-47, February.
- Christopher D. Carroll, 1992. "How does future income affect current consumption?," Working Paper Series / Economic Activity Section 126, Board of Governors of the Federal Reserve System (U.S.).
- Helmut Stix, 2012.
"Why Do People Save in Cash? Distrust, Memories of Banking Crises, Weak Institutions and Dollarization,"
178, Oesterreichische Nationalbank (Austrian Central Bank).
- Stix, Helmut, 2013. "Why do people save in cash? Distrust, memories of banking crises, weak institutions and dollarization," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4087-4106.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Orazio P. Attanasio & Guglielmo Weber, 1994.
"Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey,"
NBER Working Papers
4795, National Bureau of Economic Research, Inc.
- Attanasio, Orazio P & Weber, Guglielmo, 1995. "Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1121-57, December.
- Alessie, Rob & Lusardi, Annamaria & Kapteyn, Arie, 1999. "Saving after retirement: evidence from three different surveys," Labour Economics, Elsevier, vol. 6(2), pages 277-310, June.
- Martin Browning & Thomas F. Crossley, 2001.
"The lifecycle model of consumption and saving,"
IFS Working Papers
W01/15, Institute for Fiscal Studies.
- Martin Browning & Thomas F. Crossley, 2000. "The Life Cycle Model of Consumption and Saving," Social and Economic Dimensions of an Aging Population Research Papers 28, McMaster University.
- Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
- Jan Hanousek & Zdenek Tuma, 2002. "A test of the permanent income hypothesis on Czech voucher privatization," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(2), pages 235-254, July.
- Modigliani, Franco, 1985.
"Life Cycle, Individual Thrift and the Wealth of Nations,"
Nobel Prize in Economics documents
1985-1, Nobel Prize Committee.
- Modigliani, Franco, 1986. "Life Cycle, Individual Thrift, and the Wealth of Nations," American Economic Review, American Economic Association, vol. 76(3), pages 297-313, June.
- Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, October.
- Grosjean, Pauline, 2011. "The institutional legacy of the Ottoman Empire: Islamic rule and financial development in South Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 1-16, March.
When requesting a correction, please mention this item's handle: RePEc:onb:oenbfi:y:2013:i:3:b:1. 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: (Birgit Riedler)
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.