Structure of Financial Savings during Indian Economic Reforms

Raghbendra Jha and Ibotombi S. Longjam

ASARC Working Papers from The Australian National University, Australia South Asia Research Centre

Abstract: In an economy undergoing structural reforms the composition of savings goes through considerable change. It is important to understand such changes both for increasing the volume of aggregate savings (to garner resources for higher economic growth) as well as affecting their composition (towards more productive instruments) through an understanding of inter-asset substitutability. We conduct nonparametric tests to examine whether data on financial savings in India can be rationalized in terms of a utility function of a representative economic agent. The parametric test has the disadvantage that in some cases it is not possible to distinguish between rejections of the functional form from a rejection of weak separability. We establish that data on financial savings in India are consistent with the existence of a utility function for a representative individual with a sub-preference where contractual savings (insurance and provident funds) can be separated out. This would facilitate construction of a suitable financial aggregate using these assets.

Keywords: Non-parametric estimation; financial assets; India (search for similar items in EconPapers)
JEL-codes: E21 E41 (search for similar items in EconPapers)
Pages: 15
Date: 2003
New Economics Papers: this item is included in nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://crawford.anu.edu.au/acde/asarc/pdf/papers/2003/WP2003_03.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Structure of Financial Savings During Indian Economic Reforms (2006)
Working Paper: Structure of financial savings during Indian economic reforms (2004)
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:pas:asarcc:2003-03

Access Statistics for this paper

More papers in ASARC Working Papers from The Australian National University, Australia South Asia Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Raghbendra Jha ( this e-mail address is bad, please contact ).