Household Savings Research Articles

Study on the influence of Internet finance on urban household savings rate: Evidence from China

This study aims to investigate the impact of Internet finance on the urban household savings rate. We constructed a theoretical model to depict the mechanism of how Internet finance influences urban household savings rates. For empirical analysis, we use the cross-sectional data from the China Household Finance Survey (CHFS) and conduct ERM to attain the extent to which Internet finance affects savings rates. The results show that the behavior of urban households participating in Internet finance has a significantly reduced effect on the urban household savings rate. In addition, the results of heterogeneity analysis show that the effect of Internet finance on the savings rate for urban households with a low level of assets and income is stronger and more significant, which has strong political implications. The results also show that households with older average age are not significantly affected by Internet finance, which reveals the possible limitations. This study provides a theoretical model to reveal the mechanism of how Internet finance reduces household savings rate and uses empirical analysis to measure the marginal influence of Internet finance on urban household savings rate, as well as offers suggestions for better development of Internet finance.

Long-term economic impact of disasters: Evidence from multiple earthquakes in China

This paper examines the short-term and long-term economic impacts of relative-ly small but more frequent earthquakes in China. Using a difference-in-differences approach based on prefecture-level city panel data, combined with a unique data set on seismic events in China, we find that both moderate and strong earthquakes significantly decrease affected prefectures’ GDP per capita in the long run. These effects vary depending on the level of local government fiscal autonomy, social capital intensity, and infrastructure development. We also find that three mechanisms contribute to long-term negative effects: the household savings rate, fixed asset investment, and innovation. Our results provide new insights for policymakers to address relatively small disasters, which can have a significant impact on the local economy in the long run.

Do women's working hours inputs yield higher household economic welfare than men's?

Time allocation, which encompasses various aspects of the labor market and the household sphere, is a key factor affecting both genders in the employment and household spheres. Using the data from China Family Panel Studies Survey (CFPS) of 2014, 2016 and 2018, the paper examines the impact of working hours input on household economic welfare. The research results indicate that women's working hours input significantly contributes to the household economy and passes a series of robustness tests; the positive effect of women's working hours input on the household economy is stronger than that of men using the household savings rate to measure household economic welfare; and there are increasing working hours input and enhancing household economic welfare through the mechanism of increasing household income. Theoretically, time allocation is placed within the logical framework of the household microcosm. It suggests that individual working hours influence household economic welfare. Practically, the research findings provide useful policy insights: raising workers' wage levels, narrowing the gender labor gap, and improving working time systems and work arrangements to promote the equal development of both genders in the employment and household spheres.

The link between household savings rates and GDP: evidence from the Visegrád group

ABSTRACT During the past two decades, two global events highlighted the importance of household savings to economies and individuals, and their relation to economic activity and growth. First, the Global Financial Crisis of 2008 reminded the world that household savings are essential for economic recovery and sustainable economic development. Second, the recent COVID-19 pandemic showed how vulnerable household savings are to various external shocks. This paper investigates the relationship between household savings rates and real GDP in the four countries of the Visegrád Group, namely the Czech Republic, Hungary, Poland, and Slovakia, for the period 1996–2021. Our empirical analyses indicate short-run Granger causality from real GDP to household savings rates, and from household savings rates to real GDP, in both the Czech Republic and Hungary. Additionally, we also report significant long-run relationships between household savings rates and real GDP, particularly in Hungary .

The Role of Community-Based Health Insurance in Empowerment of Women’s Health and Economic Rights in Ethiopia

The guarantee of fundamental health and economic rights and the role of gender equality are still relevant and quotidian topics, especially in developing countries. Despite the constitutional guarantees within the Federal Democratic Republic of Ethiopia, women’s status remains significantly lower than men’s, primarily due to lower income, limited access to education, and various social constraints. Due to the absence of social security, health insurance and lack of financial autonomy and self-sufficiency, females often could not access healthcare independently. This situation is changing for women and their families in Ethiopia. The study aims to assess the role of community-based health insurance (CBHI) in fostering the health and economic empowerment of women’s rights. The CBHI proves to be an effective means of social security that boosts the provision of health services to members of susceptible peoples, which can improve health knowledge, preventative healthcare measures, and maternal and child mortality rates. This initiative can considerably increase women’s access to healthcare services while also providing them with chances for economic empowerment. Those women who are CBHI members spend less on healthcare (reducing out-of-pocket healthcare expenditures), allowing them to increase household income and allocate more resources towards other household expenses or savings. Due to the enrolment, women and other parts of their families have the opportunity for decision-making power and freedom to decide about their health because of financial constraints. Increasing access to the CBHI programs and ensuring that these are accessible to all women and other marginalised communities can help address gender disparities in healthcare access and economic opportunities, ultimately leading to a more equitable society.

Kajian Simpanan Biji Pala Oleh Petani Di Desa Morela Kecamatan Leihitu Maluku Tengah

The habit of storing the harvest in the form of nutmeg is something that has become a culture among the people of Morela village, Leihitu District, Central Maluku Regency. This research will examine theoretically the economic variables that influence the storage of dry nutmeg seeds by farming households. To analyze the relationship between variables that cause savings choices, an inter-time model is used. The choice is based on the meaning of the present and future times. If the present time is more meaningful then farmers will sell the nutmeg seeds they have and conversely if the future time is more meaningful it will increase the amount of nutmeg savings. The variables included in this research are relative price variables, current income and future income. This research uses primary data through interviews and questionnaires. The samples taken based on the purposive random sampling method were 75 farmers in Morela village. To analyze the magnitude of the influence of the independent variable on the dependent variable, cross-section regression was used using the Eviews tool. The results of the research show that the price variables at harvest, the estimated future price of cloves, and future consumption influence the clove savings of farmer households.

External Factors Influencing on the Development of Mutual Funds in Kazakhstan

This study explores the potential for the development of mutual funds in Kazakhstan by analyzing external factors such as regulatory policies, market conditions, and geopolitical events. The increasing household savings rate in Kazakhstan and growing foreign investment in mutual funds suggest a positive outlook for the industry. The aim of this study is to explore and analyze the external factors influencing the development of mutual funds in Kazakhstan and their potential implications for investors and the broader financial market. Additionally, the study aims to investigate the factors that influence investors' behavior in selecting mutual funds over other investment vehicles such as bank deposits. The study also seeks to develop and test hypotheses regarding the impact of external factors, such as time horizon, investment knowledge, and risk capacity, on the development of mutual funds in Kazakhstan. The research is based on a survey of professionals from the finance and banking industry in Kazakhstan, and the results indicate that consistent past performance, size of funds, and cost of transaction are the most important factors for mutual fund selection. The study concludes that the growth in mutual funds in Kazakhstan presents significant opportunities for investors, fund managers, and policymakers, but also highlights the need for continued research into the factors influencing mutual fund performance.

Do households react to policy uncertainty by increasing savings?

Studying the impact of policy uncertainty on household savings is essential to understanding how policymaking affects households’ economic behavior. Previous studies suggest that policy uncertainty could dampen consumption and encourage savings. However, these studies did not consider the effects of the business cycle and endogeneity and the roles of financial development and institutional quality in the uncertainty-saving nexus. Using quarterly data from 21 countries from 1987–2021, we find that a one-standard-deviation rise in policy uncertainty increases household saving rates by three percentage points within six quarters. This effect persists even after accounting for the business cycle and endogeneity. In addition, high financial development and institutional quality mitigate the policy uncertainty effect on savings by about 1.1 and 0.7 percentage points, respectively. This study enriches the study on policy uncertainty and household savings while also providing new insights to better identify the impact of policy uncertainty.

Nexus between Government Assistance and Savings: Preliminary Analysis of Households in Malaysia

This preliminary study investigates the relationship between government assistance and household savings. The study aimed to shed light on whether government assistance programs directly influence households' savings habits. Data were collected from 25 representative sample households, including their income, expenses, savings, and participation in government assistance programs. The study examined how much money households could save regularly. The study suggested a significant correlation, between government assistance and household savings. Families that received some form of government support demonstrated a lower propensity to save than those who did not receive assistance. This trend was consistent across different income brackets and demographic groups. The researchers proposed several potential reasons for this relationship. There can be several reasons for this negative relationship. First, increased government assistance may alleviate financial strain and provide immediate relief for individuals or households, reducing the urgency or perceived need to save for future expenses or emergencies. Second, some government assistance programs may have income limits or asset tests that discourage or restrict saving behavior. It is important to note that this study was preliminary, and further research is necessary to establish a more robust understanding of the relationship between government assistance and household savings. Future studies could delve into the long-term effects of government support on savings behavior and investigate the specific mechanisms through which assistance programs influence savings habits. The preliminary findings suggest a negative association between government assistance and household savings. It emphasizes the importance of further exploring this relationship to understand household financial well-being comprehensively.

Impact of Organic Farming on the Livelihood of Organic Farmers in Manipur

Impact of Organic Farming on the Livelihood of Organic Farmers in Manipur

Quality of life among women living in Haor Basin in Bangladesh and its socio-economic predictors

The Haor region in Bangladesh is a relatively more poverty-driven area than other rural areas of Bangladesh. There is very little information about the quality of life of women living in Haor areas. Therefore, the present study aimed to assess Haor women's quality of life and identify predictors. The data from the project titled ‘Livelihood and Socio-economic well-being of Women Living in Haor Basin: A Cross-sectional Survey’ were utilized in this study. Results showed that household income was lower than that reported in the household income and expenditure survey or HIES Survey 2016 for rural people in Bangladesh. Around half of them actively participated in the household economic decision-making process and one- fifth were satisfied with their household and personal financial condition. Only 30% rated their quality of life as good or very good. Contribution to household income, importance and control over household economic decisions, and household savings and loans, were significantly associated with the overall quality of life and its domains. This study’s findings would help to design and implement policies and development program to improve the living standard of women living in Haor Basin and thus help to achieve the relevant targets under specific sustainable development goals.

Transformation of Household Savings in the Russian Federation in Conditions of High Macroeconomic Risks in 2022

In the context of growing macroeconomic risks in 2022 caused by the financial and economic consequences of the global pandemic, the application of unprecedented sectoral and personal sanctions against the Russian Federation has led to the formation of new trends in the functioning of the finances of Russian households. The factors mentioned above change their income level, socio-economic motivation, consumer attitudes and, as a result, the volume and structure of citizens' savings. The study used the decile method of household income analysis in 2022. As a result of the study, the following trends were revealed: the incomes of households with the lowest incomes in 2022 practically did not fall due to the active social support of the state; the incomes of households with relatively high wages decreased by 2–3 %; during 2022, the value of organized savings decreased, and the value of unorganized savings on the contrary increased, especially in foreign currency; income analysis has shown that two thirds of households are actually unable to form savings, creates small insurance reserves.

Urbanisation and housing finance nexus: Evidence from Australia

The rapid urbanisation being experienced in major cities across the globe has occasioned greater housing demand and brought to the fore the importance of understanding housing finance systems to support the housing market. However, current literature on the nexus between urbanisation and housing finance is limited. Further, existing literature about housing finance is aggregated and assumed symmetric effects. We used a NARDL model to examine the asymmetric effects of housing variables on loan commitment over 1980Q2 to 2022Q2 and documented the following findings. First, we decoupled the housing finance market into owner-occupier and housing investment and found asymmetric effects of key housing variables on loan commitment for each of these submarkets. Second, urbanisation has a telling effect on loan commitment for owner-occupier but not for investors. Third, the asymmetric results highlighted the importance of promoting economic prosperity and reducing the housing lending rate to boost loan commitment for both owner-occupier and housing investment by varying magnitudes. However, increasing the approval rate of private dwellings and boosting the household savings ratio can enhance loan commitment for owner-occupiers but not investors. These findings could aid the formulation of more targeted housing finance policies, in turn, helping develop a more resilient housing market especially in countries with high urbanisation rates.

The environmental influence of national savings in D-8 countries: Empirical evidence using an ARDL model.

Extensive theoretical and empirical evidence supports the crucial role of savings in driving a nation's economic growth and development. However, previous studies have not considered their potential environmental implications. This study aims to explore the influence of savings and remittances on the Developing-8 countries (D-8) from 1989 to 2019, using the panel autoregressive distributed (ARDL) model. The findings reveal that national savings and remittances, in the long run, help mitigate environmental degradation in the D-8 countries but energy use and population growth stimulate carbon dioxide (CO2) emissions. In contrast, economic growth does not significantly affect these countries' environmental quality in the long run. However, none of the explanatory variables have any significant relationship with CO2 emissions in the short run. Therefore, policymakers in the D-8 countries are strongly encouraged to prioritize the enhancement of national savings across the three economic agents to maximize the positive effects of savings on environmental quality. Government savings can be increased by reducing deficits and borrowings, while corporate savings can be encouraged by implementing investment tax credits and promoting research and development. Additionally, governments can embark on public enlightenment campaigns on financial education and provide incentives to encourage household savings.

Does internet use drive rural household savings? Evidence from 7825 farmer households in rural China

Based on the 7825 farmer households from the 2016 China Labor Dynamic Survey Database (CLDS), this study employs the Tobit model and endogenous switching model to empirically investigate the impact of Internet use on rural household savings. This study finds that: (1) Internet use in rural areas significantly promotes rural household savings. (2) Farmers with Internet use and close to the bank, may have higher saving rates than farmers with Internet use and far from the bank. (3) Rural household savings are also closely associated with the characteristics of the household head, household members, and the geographic location of the village.

The Well-being Effects of an Old-Age Pension: Experimental Evidence for Ekiti State in Nigeria

Abstract Many countries in the developing world have implemented old-age pensions. Evidence of the impact of such policies on the elderly in sub-Saharan Africa, however, is scarce. We provide evidence from a randomised evaluation of an unconditional old-age pension targeted at the elderly in Ekiti State, Nigeria. Our findings show that treated beneficiaries self-report better quality of life and a more stable mental health. We also provide evidence of spillover effects on the labor outcomes of other household members and of household savings patterns as well as support for interventions aimed at improving the welfare of elderly poor citizens and other household members.

Competition between postal and bank branches for household savings: Empirical evidence from India

AbstractPostal financial services have been the beacon on financial inclusion globally. However, with the impact of digitalization, the physical network of post offices no longer remains the core competency. This article analyzes the various factors contributing to household savings across both banks and post offices. It examines the effect of competition at the network level between banks and post offices. The main finding is that the extensive physical network of post offices does not significantly impact postal deposits. There is competition between post offices and private and public banks at the rural population class level. However, at the urban population class level, competition exists only at two levels: between private banks and India Post and between nationalized banks and India Post.

The effectiveness of a negative interest rate policy

In a dynamic stochastic general equilibrium model that is calibrated for the euro area, a negative interest rate policy (NIRP) can have contractionary effects on the economy when interest rates on household deposits reach the zero lower bound, and such deposits are the only source of bank funding and household savings. However, by introducing additional assets to households’ portfolios and alternative sources of bank funding, such as bank bonds, the NIRP becomes expansionary. Because both features characterize the euro area well, they are essential to study the effectiveness of NIRP policies.

Determinants of household savings rates: Logistic quantile regression approach

Saving rates have a fundamental economic importance that affects the economic performance of countries and the welfare level of individuals. Savings have been addressed in various ways with alternative economic approaches. The determinants of household savings rates were examined at the level of quantiles in this study. For this purpose, the logistic quantile regression approach proposed for bounded dependent variables was used. Since savings rates have a bounded and continuous structure, it is appropriate to analyze them with this method. Income level has been considered the principal determinant of savings rates and the change in the effect of income on savings rate at the level of quantiles was examined in details. As a result of the analysis performed separately for homeowners and tenants, it was determined that there were differences between the two groups. The change in the income effect was non-linear at the quantile level in both groups. While income was more effective at high savings rates for homeowners, it was more effective at low savings rates for tenants. On the other hand, the effects of other characteristics of the households also differed between the homeowners and the tenants at the level of the quantiles.

Household Savings in Selected Southern European Countries Evidence from Cross-Country Micro-Level Data

Household Savings in Selected Southern European Countries Evidence from Cross-Country Micro-Level Data