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Understanding the Determinants of Household Saving: Micro Evidence for Latin America

Author

Listed:
  • Ricardo Bebczuk

    (CEDLAS - UNLP)

  • Leonardo Gasparini

    (CEDLAS - UNLP)

  • Noelia Garbero

    (CEDLAS - UNLP)

  • Julian Amendolaggine

    (CEDLAS - UNLP)

Abstract

This study centers on the household saving rate in Latin America by constructing a new database from 27 household surveys in 10 countries. At the statistical level, about half of the households present negative saving. This fact, coupled with the discrepancy with national accounts data, suggests some degree of income underreporting and/or consumption overreporting. The estimations highlight the overriding positive role of income in shaping saving decisions. Many other controls prove to be significant as well. In terms of household saving promotion, our paper leaves little room for optimism.

Suggested Citation

  • Ricardo Bebczuk & Leonardo Gasparini & Noelia Garbero & Julian Amendolaggine, 2015. "Understanding the Determinants of Household Saving: Micro Evidence for Latin America," CEDLAS, Working Papers 0189, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0189
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    File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas189.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bande, Roberto & Riveiro, Dolores & Ruiz, Freddy, 2021. "Does Uncertainty Affect Saving Decisions of Colombian Households? Evidence on Precautionary Saving," MPRA Paper 106771, University Library of Munich, Germany.
    2. Néstor Gandelman, 2017. "Do the rich save more in Latin America?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 75-92, March.
    3. Bhupal Singh, 2022. "Housing and stock market wealth effects in developing economies," International Economics and Economic Policy, Springer, vol. 19(1), pages 29-49, February.
    4. Cuomo, Maria Teresa & Tortora, Debora & Colosimo, Ivan & Ricciardi Celsi, Lorenzo & Genovino, Cinzia & Festa, Giuseppe & La Rocca, Michele, 2023. "Segmenting with big data analytics and Python: A quantitative exploratory analysis of household savings," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Determinants of Formal and Informal Saving in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 4, pages 95-123, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    6. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Factores determinantes del ahorro formal e informal en Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 4, pages 101-131, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    7. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2016. "Ahorro de los hogares de ingresos medios y bajos de las zonas urbana y rural en Colombia," Borradores de Economia 960, Banco de la Republica de Colombia.
    8. María José Roa García & Diana Mejía (ed.), 2018. "Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe," Investigación Conjunta-Joint Research, Centro de Estudios Monetarios Latinoamericanos, CEMLA, edition 1, volume 1, number 7sp, December.
    9. Mr. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2015. "Saving in Latin America and the Caribbean: Performance and Policies," IMF Working Papers 2015/108, International Monetary Fund.
    10. Çağaçan DEĞER & Elif ERER, 2020. "Social Security Membership and Saving: The Turkish Case," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).
    11. Dr. Alain Galli & Dr. Rina Rosenblatt-Wisch, 2022. "Analysing households' consumption and saving patterns using tax data," Working Papers 2022-03, Swiss National Bank.
    12. Néstor Gandelman, 2017. "Do the rich save more in Latin America?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(1), pages 75-92, March.
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    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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