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Structural Determinants of Household Savings in Turkey: 2003-2008

Author

Listed:
  • Arda Aktas

    (Stony Brook University)

  • Duygu Guner

    (University of Mannheim)

  • Seyfettin Gursel
  • Gokce Uysal

    (Bahcesehir University Center for Economic and Social Research (Betam))

Abstract

Widening current account deficits coupled with low private saving rates in Turkey have started a recent policy debate on how household savings can be increased. Using Household Budget Surveys from 2003 to 2008, we study the structural determinants of household savings in Turkey. We consider various different definitions for savings, including durable consumption goods, education and health. Our findings are robust across different definitions. The results indicate that dependency ratios of households are important determinants of savings. Lower shares of dependent children or dependent elderly in the household imply higher saving rates. Moreover, female labor force participation has significant effects, i.e. households with higher shares of working females, have higher saving rates as well. We also find that households in which the head is self-employed or an employer have higher saving rates. Moreover, households with where pension payments constitute a larger share of income save less. Note that pension payments are always coupled with free health benefits. These findings point to strong evidence of precautionary savings.

Suggested Citation

  • Arda Aktas & Duygu Guner & Seyfettin Gursel & Gokce Uysal, 2010. "Structural Determinants of Household Savings in Turkey: 2003-2008," Working Papers 007, Bahcesehir University, Betam, revised Jun 2010.
    • Handle: RePEc:bae:wpaper:007
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    References listed on IDEAS

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    Cited by:

    1. Tomasz Zalega, 2016. "Incomes and Savings of Polish Seniors in View of Research Outcomes (Poziom dochodow i oszczêdnosci osob starszych w Polsce w swietle wynikow badan)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 14(59), pages 135-155.
    2. Cengiz Tunc & Abdullah Yavas, 2016. "Not all credit is created equal : Mortgage vs non-mortgage debt and private saving rate in Turkey," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 16(1), pages 25-32.
    3. Savaş ÇEVİK, 2015. "Domestic Saving and Tax Structure: Evidence from Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(23).
    4. Caroline Van Rijckeghem, 2010. "Determinants of Private Saving in Turkey: An Update," Working Papers 2010/04, Bogazici University, Department of Economics.
    5. Çağaçan DEĞER & Elif ERER, 2020. "Social Security Membership and Saving: The Turkish Case," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).

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    More about this item

    Keywords

    private savings; Turkey;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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