Bachelor of Arts
Interest, Rates, Household, Savings, Demographic
This paper tests several hypotheses about the responsiveness of household saving to the real interest rate. It tests how the interest responsiveness in a country depends on certain common macroeconomic and demographic variables. These include per-capita income, the income distribution, the pervasiveness of borrowing constraints, the degree of financial depth, and demographic characteristics. The rationale for considering these variables is provided in the context of a theoretical model of household saving behavior, which then leads to the estimation of a structural equation for household saving.
Thirumurthy, Harsha, "Household Saving Behavior and the Real Interest Rate: An Empirical Study" (1998). Honors Papers. 536.