Precautionary saving from different sources of income
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Precautionary saving from different sources of income evidence from rural Pakistan by Richard H. Adams

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Published by World Bank, Poverty Reduction and Economic Management Network, Poverty Reduction Group in Washington, D.C .
Written in English

Subjects:

Places:

  • Pakistan

Subjects:

  • Income -- Pakistan -- Mathematical models.,
  • Saving and investment -- Pakistan -- Mathematical models.

Book details:

About the Edition

Much of past literature has assumed that households in developing countries save at the same marginal rate from all sources of income. But in rural Pakistan households save at very different marginal rates from different sources of income. The marginal propensity to save from those sources of income that are more variable and uncertain --- like external remittances --- is much higher than from those sources of income that are more predictable --- like rental income.

Edition Notes

StatementRichard H. Adams.
SeriesPolicy research working paper ;, 2761, Policy research working papers (Online) ;, 2761.
ContributionsWorld Bank. Poverty Reduction and Economic Management. Poverty Reduction Group.
Classifications
LC ClassificationsHG3881.5.W57
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3669001M
LC Control Number2002615739

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Adams () studied the precautionary saving behavior of Pakistani households in response to income from seven different sources. His results indicate that remittances are seven times more likely Author: Richard H. Adams. Precautionary saving is saving (non-expenditure of a portion of income) that occurs in response to uncertainty regarding future precautionary motive to delay consumption and save in the current period rises due to the lack of completeness of insurance markets. Accordingly, individuals will not be able to insure against some bad state of the economy in the future. Downloadable! Few studies have tried to measure how households in a developing country save from each of the different income sources at their disposal. To help fill that gap, the Author uses five-year panel data to examine how households in rural Pakistan save from each of the seven separate sources of income. The author finds that households save from different sources of income at. Household Welfare, Precautionary Saving, and Social Insurance under Multiple Sources of Risk Ivan Vidangosy Federal Reserve Board November 6, Abstract This paper assesses the quantitative importance of a number of sources of income risk for household welfare and precautionary saving. To that end I construct a lifecycle consumptionCited by:

Book/Printed Material Precautionary saving from different sources of income evidence from rural Pakistan / Much of past literature has assumed that households in developing countries save at the same marginal rate from all sources of income. Li () was the first to address the issue of precautionary saving in the presence of labor income and interest rate risks together, giving rise to a debate that has recently been enriched by Author: Jingyuan Li.   Passive income is when the payment is not directly tied to active work. Interest and dividends are prime examples of passive income. Typical passive income sources are front-loaded with active work, for which you are paid a small amount, while the bulk of the income comes later. Don't mistake passive income with zero work. It's still work, it's. Downloadable! Traditionally, farm households have relatively high saving and low marginal propensity to consume (MPC). In the last decades, this seems to have changed. To investigate these matters, a dynamic consumption model is estimated using a GMM-system estimator and a panel of Norwegian farm households followed from The main findings are that the MPC of farm income is .

  1. Earned Income Earned income is the money that you make by doing something or spending your time, e.g. the money that you make in your job or salary you get by working for someone else. Now, this is where your quality of life will suffer the mos. The total of the components of spending in the economy, added to get GDP: Y = C + I + G + X – M. It is the total amount of demand for (or expenditure on) goods and services produced in the economy. See also: consumption, investment, government spending, exports, imports. As a result, changes in current income influence spending, affecting the. Precautionary saving from different sources of income evidence from rural Pakistan / Much of past literature has assumed that households in developing countries save at the same marginal rate from all sources of income. But in rural Pakistan households save at very different marginal. Different from permanent-income type consumption models with unobservable income processes, such as those of Goodfriend () and Pischke (), this paper shows that unobservability of individual components of income induces the agent to increase his precautionary saving to account for estimation risk (measured by steady-state variance Σ Cited by: