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Locus of Control, Saving and Propensity to Save


  • Alessandro Bucciol

    () (Department of Economics (University of Verona))

  • Serena Trucchi

    () (Cardiff University)


We study the relationship between (internal and external) locus of control and saving choices using data from a longitudinal household survey representative of the Dutch population. Our findings show that individuals with more internal locus of control and less external locus of control save more, both at the extensive (probability to save) and intensive margins (amount of saving). We also investigate the mechanisms behind the relationship, assessing the role of propensity to save as a mediator. This way the effects on saving of internal and external locus can be split in direct and indirect components; the latter, which is found to be significant although less sizeable than the direct component, means that locus of control has an impact on the propensity to save which, in turn, affects saving.

Suggested Citation

  • Alessandro Bucciol & Serena Trucchi, 2020. "Locus of Control, Saving and Propensity to Save," Working Papers 06/2020, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:06/2020

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    Locus of Control; Saving decisions; Propensity to Save; Mediation analysis.;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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