IDEAS home Printed from https://ideas.repec.org/a/vrs/aicuec/v59y2012i2p93-104n7.html
   My bibliography  Save this article

How Do We Value Our Income from which We Save?

Author

Listed:
  • Liberda Barbara

    ()

  • Pęczkowski Marek

    () (Faculty of Economic Sciences University of Warsaw Warsaw, Poland)

  • Gucwa-Leśny Ewa

    () (Institute for Social Studies Warsaw, Poland)

Abstract

In this paper we analyze the relationship between the perception of income as satisfying household needs and saving rate of this household. Using the multinomial logit regression function we measure the probability of a household to fall into one of the groups categorized by the subjective perception of income in relation to the current household disposable income. The variable specified for the valuation of income is income perception, defined as a class of observed disposable income located on the scale of the subjectively satisfying income. Factors determining the perception of income are: gender and education of the household head, family characteristics, source of income and place of residence. The analysis of relations between the income perception and the household saving rates shows that the perception of income affects both the household observed and predicted saving rates. The research is based on the Household Budget Surveys data for Poland in 2008.

Suggested Citation

  • Liberda Barbara & Pęczkowski Marek & Gucwa-Leśny Ewa, 2012. "How Do We Value Our Income from which We Save?," Scientific Annals of Economics and Business, De Gruyter Open, vol. 59(2), pages 93-104, December.
  • Handle: RePEc:vrs:aicuec:v:59:y:2012:i:2:p:93-104:n:7
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/aicue.2012.59.issue-2/v10316-012-0034-5/v10316-012-0034-5.xml?format=INT
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barbara Liberda, 1999. "Household Saving in Poland," CASE Network Studies and Analyses 0187, CASE-Center for Social and Economic Research.
    2. Stanovnik, Tine, 1992. "Perception of poverty and income satisfaction : An empirical analysis of Slovene households," Journal of Economic Psychology, Elsevier, vol. 13(1), pages 57-69, March.
    3. Easterlin, Richard A., 2006. "Life cycle happiness and its sources: Intersections of psychology, economics, and demography," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 463-482, August.
    4. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    5. van Praag, Bernard M. S., 1991. "Ordinal and cardinal utility : An integration of the two dimensions of the welfare concept," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 69-89, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hanna Dudek & Joanna Landmesser, 2012. "Income satisfaction and relative deprivation," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 13(2), pages 321-334, June.

    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D19 - Microeconomics - - Household Behavior - - - Other
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:aicuec:v:59:y:2012:i:2:p:93-104:n:7. 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: (Peter Golla). General contact details of provider: http://www.degruyteropen.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.