Short-term precaution, insurance and saving mechanisms in rural Vietnam

van Dung Ha ()
Additional contact information
van Dung Ha: University of Paderborn

No 82, Working Papers CIE from Paderborn University, CIE Center for International Economics

Abstract: This study investigates the impacts of short-term precautionary selection and insurance on household decisions regarding the participation in different kinds of saving mechanisms in rural Vietnam. The two-part model is employed for the analysis and unlike other studies I investigate household decisions regarding both, participation and contribution to formal and informal saving intermediaries. Furthermore we control for the endogeneity of the short-term precautionary motive and of insurance in the model of household contribution. The finding suggests that the short-term precautionary motive reduces the household probability to engage into formal and informal saving intermediaries. In addition, insurance is found to be a substitute for short-term precautionary savings. Concerning the contribution aspect, the short-term precautionary motive is found to reduce the participant’s deposits in formal saving intermediaries while there is no evidence for insurance in influencing household contribution to saving intermediaries.

Keywords: Short-term precautionary motive; insurance; saving intermediaries; cash hoarding; deposits (search for similar items in EconPapers)
JEL-codes: O12 O16 O17 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2014-06
New Economics Papers: this item is included in nep-ias, nep-iue, nep-mfd, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP82.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pdn:ciepap:82

Access Statistics for this paper

More papers in Working Papers CIE from Paderborn University, CIE Center for International Economics Contact information at EDIRC.
Bibliographic data for series maintained by WP-WiWi-Info ( this e-mail address is bad, please contact ) and ( this e-mail address is bad, please contact ).