A Divisia type saving aggregate for India

Raghbendra Jha and Ibotombi Longjam

Macroeconomics and Finance in Emerging Market Economies, 2008, vol. 1, issue 1, 51-66

Abstract: Indian financial sector reforms initiated in 1991-92 have significantly affected user costs of assets and have resulted in significant substitution among them. Thus there is a need to develop a measure of savings that reflects household choice over assets more accurately than the simple sum. An advantage of monetary aggregates that are based on microtheoretic foundations, for example, the Divisia index, is that no a priori assumptions about asset substitutability need be imposed. We construct Divisia subaggregates of the financial assets component of Indian household savings and an overall aggregate of financial savings and demonstrate their superiority to the simple sum constructs.

Keywords: Divisia aggregates; financial savings (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/17520840701834966 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A Divisia Type Saving Aggregate for India (2003)
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:taf:macfem:v:1:y:2008:i:1:p:51-66

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REME20

DOI: 10.1080/17520840701834966

Access Statistics for this article

Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal

More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().