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Household Saving in Poland


  • Barbara Liberda


The author estimates determinants of household saving in Poland in years 1994.1997. It turns out that the household saving rate depends strongly on household income. However, the household saving function from disposable income is not strictly linear. It "kinks" upwards at the point where household income is 1.5 times higher than the average income. The saving profiles of households in Poland partially resemble those that would follow from the life cycle theory. The ratio of beneficiares to contribution payers in Poland is 2.5 times higher than the ratio of population of retirement age to economically active people and 1.5 higher than the ratio of average retirement lifetime to average working lifetime. Such a situation gives rise to very high costs of the former pay-as-you-go (PAYG) system in comparison to fully funded systems. The author compares model costs of both systems over the horizon of next 30.40 years and forecasts an equalisation of the above ratios by about 2030. The impact of the pension system reform on savings will depend on many counteracting factors.

Suggested Citation

  • Barbara Liberda, 1999. "Household Saving in Poland," CASE Network Studies and Analyses 0187, CASE-Center for Social and Economic Research.
  • Handle: RePEc:sec:cnstan:0187

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    References listed on IDEAS

    1. Christopher D Carroll, 1997. "Why Do the Rich Save So Much?," Economics Working Paper Archive 388, The Johns Hopkins University,Department of Economics.
    2. Huggett, Mark & Ventura, Gustavo, 2000. "Understanding why high income households save more than low income households," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 361-397, April.
    3. Schmidt-Hebbel, Klaus & Webb, Steven B & Corsetti, Giancarlo, 1992. "Household Saving in Developing Countries: First Cross-Country Evidence," World Bank Economic Review, World Bank Group, vol. 6(3), pages 529-547, September.
    4. Cevdet Denizer & Holger C. Wolf, 1998. "Household Savings in Transition Economies," NBER Working Papers 6457, National Bureau of Economic Research, Inc.
    5. Patrick Honohan, 1995. "The Impact of Financial and Fiscal Policies on Saving," Papers WP059, Economic and Social Research Institute (ESRI).
    6. Barbara Liberda & Tomasz Tokarski, 1999. "Determinates of Savings and Economic Growth in Poland in Comparison to the OECD Countries," CASE-CEU Working Papers 0024, CASE-Center for Social and Economic Research.
    7. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
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    Cited by:

    1. Liberda Barbara & Pęczkowski Marek & Gucwa-Leśny Ewa, 2012. "How Do We Value Our Income from which We Save?," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 93-104, December.
    2. Marek Pęczkowski & Barbara Liberda, 2011. "Does a change of occupation lead to higher earnings?," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 12(1), pages 193-206, August.
    3. Antoni Chawluk, 2000. "Estimates of Demand for Money and Consumption Functions for the Household Sector in Poland, 1967-1999," Economics Series Working Papers 42, University of Oxford, Department of Economics.

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    household saving; pension system reform; Poland;


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