Saving from Permanent and Transitory Income. The Case of Polish Households
Barbara Liberda (),
Brunon Górecki and
Ekonomia journal, 2004, vol. 14
The paper analyses the impact of income uncertainty on household saving. Using a panel of Polish households for 1997-2000 we decompose uncertainty of household income into a variance of shocks to permanent income and a variance of shocks to transitory income. Then we regress households' savings onthe estimated measures of income uncertainty controlling for demographicand social variables. Our empirical results indicate that the average variances of permanent and transitory income of Polish households do not differ much. Both measures of income uncertainty are statistically significant in predicting saving. The permanent income uncertainty affects savings more than the uncertainty of transitory income. A significant part of households' saving in Poland may be of precautionary, buffer-stock character.
This paper is the CHER (Consortium of the Household Panels for European Socio-economic Research) Working Paper, 2003, No. 15, presented at the 28th General Conference of the International Association for Research in Incomeand Wealth in Cork, Ireland in 2004 and at the CHER workshop in Spain, 2002. It is a companion paper to: Uncertainty of Households' Income in the European Union Countries and Poland., co-authored by B. Liberda, B. GĂÂłrecki andM. PĂ„Â™czkowski, that was published in EMERGO, 4(38)/2003 and appeared also as CHER Working Paper, 2003, No. 13, within the program Improving the Human Research Potential and the Socio-Economic Knowledge Base, supportedby the European Commission.
In preparing both papers we benefited from the grant by the Polish NationalCommittee for Scientific Research (KBN) for years 2001.2003, No. 5.1.102C 051
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eko:ekoeko:14_7
Ordering information: This journal article can be ordered from
Access Statistics for this article
Ekonomia journal is currently edited by Tomasz Żylicz
More articles in Ekonomia journal from Faculty of Economic Sciences, University of Warsaw Contact information at EDIRC.
Bibliographic data for series maintained by Marta Höffner ().