Determinants of household saving and portfolio choice behaviour in Turkey

Halime Temel Nalın ()
Additional contact information
Halime Temel Nalın: Bulent Ecevit University Department of Business Administration, Faculty of Economics and Administrative Sciences, 67100 Zonguldak, Turkey

Acta Oeconomica, 2013, vol. 63, issue 3, 309-331

Abstract: This study investigates the determinants of Turkish households’ saving and portfolio choice behaviour for the period of 2002–2006. The dataset includes 59,855 households, of whom only 10,829 report to have saved and invested. Hence, we first estimate a logit model to identify the characteristics of the households that have saved. Next, we estimate a multinomial logit model where the investment alternatives for the households are real estate, gold, foreign exchange, bank accounts, capital market investments, and investing into own business. The factors affecting the portfolio choices are the variables representing various aspects of households’ demographic, socioeconomic and residential location characteristics. The inflation level nearly doubled during the study period in Turkey. Hence, we also analyse the effects of inflation on households’ saving and portfolio choice decisions. The results of our logit model support the view that the inflation can increase the household savings on condition that the other macroeconomic factors are constant. Furthermore, inflation is also found to increase the probability of investing in capital market instruments. Households’ incomes, education levels, occupation, place of residence (rural/urban), car ownership and household size are found to be significant variables in explaining the variation in households’ saving and portfolio choice behaviour.

Keywords: portfolio preference; investment; household savings; multinomial logit model; Turkey (search for similar items in EconPapers)
JEL-codes: C25 E21 G11 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://akademiai.com/content/67328627jgp86021/fulltext.pdf (application/pdf)
subscription

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:aka:aoecon:v:63:y:2013:i:3:p:309-331

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Acta Oeconomica is currently edited by Mihályi, Péter

More articles in Acta Oeconomica from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().