Saving from Permanent and Transitory Income. The Case of Polish Households

• Authors: Liberda Z. B. , Górecki B. , Peczkowski M.
• Languages of publication: EN

Abstracts

EN

The paper analyses the impact of income uncertainty on household saving. Using a panel of Polish households for 1997-2000 the authors decomposed uncertainty of household income into a variance of shocks to permanent income and a variance of shocks to transitory income. Then they regressed household's savings on the estimated measures of income uncertainty controlling for demographic and social variables. The empirical results indicate that the average variances of permanent and transitory income of the Polish households do not differ much. Both measures of income uncertainty are statistically significant in predicting savings. The permanent income uncertainty affects savings more than the uncertainty of transitory income. A significant part of of households' savings in Poland may be of precautionary, buffer-stock character.

Keywords

EN

PERMANENT INCOME; POLISH HOUSEHOLDS

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Wydział Nauk Ekonomicznych Uniwersytetu Warszawskiego
• Journal: Ekonomia. Rynek, Gospodarka, Społeczeństwo
• Year: 2004
• Issue: 14
• Pages: 7-22
• Document type: ARTICLE

Contributors

author

Liberda Z. B.

author

Górecki B.

author

Peczkowski M.

• Z. B. Liberda, Uniwersytet Warszawski, Wydzial Nauk Ekonomicznych, ul. Dluga 44/50, 00-241 Warszawa, Poland

Identifiers

CEJSH db identifier

05PLAAAA00411010