IDEAS home Printed from
   My bibliography  Save this article

Private Saving Determinants in Portugal


  • Garcia Maria Teresa Medeiros
  • Rodrigues Pedro Nuno Louro Silvestre
  • Nunes Francisco

    (ISEG, Lisbon School of Economics and Management, Universidade de Lisboa, Lisbon, Portugal)


The combination of projected increases in the expenditure of the public pension scheme and low rates of private saving constitutes a policy challenge in Portugal. Policy debate embrace pension reform and the redoubling of household saving efforts. The purpose of this paper is to revisit the determinants of household saving in order to inform the debate with research findings, employing a constructed public pension wealth variable in a life cycle consumption/saving model pioneered by Feldstein (1974). We use time series techniques and data from 1983 to 2012. The findings show that an increase in the public pension wealth variable does not boost saving suggesting that concerns with saving to cope with the length of the life expectancy at the retirement age are not enough to reject the view that the public pension benefit is a substitute for household wealth. The other results are consistent with expectations: increases in disposable income positively impact saving; there is a significant negative propensity to save out of household wealth increase; and improvement in the government balance engender significant saving decrease.

Suggested Citation

  • Garcia Maria Teresa Medeiros & Rodrigues Pedro Nuno Louro Silvestre & Nunes Francisco, 2019. "Private Saving Determinants in Portugal," Mediterranean Journal of Social Sciences, Sciendo, vol. 10(2), pages 57-68, March.
  • Handle: RePEc:vrs:mjsosc:v:10:y:2019:i:2:p:57-68:n:6

    Download full text from publisher

    File URL:
    Download Restriction: no


    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:mjsosc:v:10:y:2019:i:2:p:57-68:n:6. 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: .

    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.

    We have no references for this item. You can help adding them by using 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.