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Private Saving Rates and Macroeconomic Uncertainty: Evidence from Spanish Regional Data


  • Roberto Bande


  • Dolores Riveiro

    (GAME-IDEGA, Universidade de Santiago de Compostela)


In this paper we address the recent evolution of saving rates in the Spanish economy using regional data. The onset of the Great Recession has been followed by increasing saving rates, which may reflect precautionary behaviour of households. Thus, we test precautionary saving theory for a panel of Spanish regions in the period 1980-2007, using two different tests for consumption growth and for saving rate. We estimate a panel data model with regional fixed effects and test for the effects on consumption of uncertainty about future income, proxied by income volatility and unemployment rate, together with other variables such as income growth rate, disposable income, inflation rate, wealth to income ratios, domestic private credit and socio-demographic factors. Our preliminary results suggest that part of the large increase in savings rates is related to a precautionary motive and that increased uncertainty causes greater savings rates. Our results also suggest that, in the case of the Spanish economy, the unemployment rate is a relevant variable to measure future income uncertainty.

Suggested Citation

  • Roberto Bande & Dolores Riveiro, 2012. "Private Saving Rates and Macroeconomic Uncertainty: Evidence from Spanish Regional Data," Documentos de trabajo - IRENe 0004, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  • Handle: RePEc:edg:irenen:0004

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    Cited by:

    1. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1376-4 is not listed on IDEAS
    2. José Francisco Bellod Redondo, 2014. "El impacto de la crisis en el deterioro alimentario en España," Contribuciones a la Economía, Grupo (Universidad de Málaga), issue 2014-04, July.
    3. Bande, Roberto & Riveiro, Dolores, 2012. "The Consumption-Investment-Unemployment Relationship in Spain: an Analysis with Regional Data," MPRA Paper 42681, University Library of Munich, Germany.
    4. Aneta Maria Kłopocka & Tomasz Kopczyński & Grażyna Lenicka-Bajer, 2014. "Financial Situation And Attitudes Towards Saving In Polish Society:Evidence From Micro Data," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 476-486, May.
    5. Lugilde, Alba & Bande, Roberto & Riveiro, Dolores, 2016. "Precautionary saving in Spain during the Great Recession: evidence from a panel of uncertainty indicators," MPRA Paper 72436, University Library of Munich, Germany.
    6. Lugilde, Alba & Bande, Roberto & Riveiro, Dolores, 2017. "Precautionary Saving: a review of the theory and the evidence," MPRA Paper 77511, University Library of Munich, Germany.
    7. Shida, Yoshisada, 2015. "Forced Savings in the Soviet Republics: Re-examination," RRC Working Paper Series 54, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

    More about this item


    Precautionary savings; uncertainty; regions; Spain;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General


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