IDEAS home Printed from https://ideas.repec.org/p/sec/cnstan/0187.html
   My bibliography  Save this paper

Household Saving in Poland

Author

Listed:
  • Barbara Liberda

Abstract

The author estimates determinants of household saving in Poland in years 1994.1997. It turns out that the household saving rate depends strongly on household income. However, the household saving function from disposable income is not strictly linear. It "kinks" upwards at the point where household income is 1.5 times higher than the average income. The saving profiles of households in Poland partially resemble those that would follow from the life cycle theory. The ratio of beneficiares to contribution payers in Poland is 2.5 times higher than the ratio of population of retirement age to economically active people and 1.5 higher than the ratio of average retirement lifetime to average working lifetime. Such a situation gives rise to very high costs of the former pay-as-you-go (PAYG) system in comparison to fully funded systems. The author compares model costs of both systems over the horizon of next 30.40 years and forecasts an equalisation of the above ratios by about 2030. The impact of the pension system reform on savings will depend on many counteracting factors.

Suggested Citation

  • Barbara Liberda, 1999. "Household Saving in Poland," CASE Network Studies and Analyses 0187, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0187
    as

    Download full text from publisher

    File URL: https://case-research.eu/upload/publikacja_plik/SA187part1.pdf
    File Function: First Part
    Download Restriction: no
    File URL: https://case-research.eu/upload/publikacja_plik/SA187part2.pdf
    File Function: Second Part
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher D Carroll, 1997. "Why Do the Rich Save So Much?," Economics Working Paper Archive 388, The Johns Hopkins University,Department of Economics.
    2. Huggett, Mark & Ventura, Gustavo, 2000. "Understanding why high income households save more than low income households," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 361-397, April.
    3. James M. Poterba, 1994. "International Comparisons of Household Saving," NBER Books, National Bureau of Economic Research, Inc, number pote94-1.
    4. Schmidt-Hebbel, Klaus & Webb, Steven B & Corsetti, Giancarlo, 1992. "Household Saving in Developing Countries: First Cross-Country Evidence," The World Bank Economic Review, World Bank, vol. 6(3), pages 529-547, September.
    5. Cevdet Denizer & Holger C. Wolf, 1998. "Household Savings in Transition Economies," NBER Working Papers 6457, National Bureau of Economic Research, Inc.
    6. Patrick Honohan, 1995. "The Impact of Financial and Fiscal Policies on Saving," Papers WP059, Economic and Social Research Institute (ESRI).
    7. Barbara Liberda & Tomasz Tokarski, 1999. "Determinates of Savings and Economic Growth in Poland in Comparison to the OECD Countries," CASE-CEU Working Papers 0024, CASE-Center for Social and Economic Research.
    8. Orazio Attanasio & James Banks, 1998. "Trends in household saving: a tale of two countries," IFS Working Papers W98/15, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Malgorzata Grzywinska-Rapca & Aleksandra A. Olejarz, 2021. "The Level of Economic Development and the Savings Rate of Households," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 430-442.
    2. Liberda Barbara & Pęczkowski Marek & Gucwa-Leśny Ewa, 2012. "How Do We Value Our Income from which We Save?," Scientific Annals of Economics and Business, Sciendo, vol. 59(2), pages 93-104, December.
    3. Marek Pęczkowski & Barbara Liberda, 2011. "Does a change of occupation lead to higher earnings?," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 12(1), pages 193-206, August.
    4. Antoni Chawluk, 2000. "Estimates of Demand for Money and Consumption Functions for the Household Sector in Poland, 1967-1999," Economics Series Working Papers 42, University of Oxford, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2016. "Ahorro de los hogares de ingresos medios y bajos de las zonas urbana y rural en Colombia," Borradores de Economia 960, Banco de la Republica de Colombia.
    2. Andrea Butelmann & Francisco Gallego, 2001. "Estimaciones de los determinantes del ahorro coluntario de los hogares en Chile (1988-1997)," Central Banking, Analysis, and Economic Policies Book Series, in: Felipe Morandé & Rodrigo Vergara & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edit (ed.),Análisis Empírico del Ahorro en Chile, edition 1, volume 1, chapter 6, pages 141-190, Central Bank of Chile.
    3. Karen E. Dynan & Jonathan Skinner & Stephen P. Zeldes, 2004. "Do the Rich Save More?," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 397-444, April.
    4. María José Roa García & Diana Mejía (ed.), 2018. "Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe," Investigación Conjunta-Joint Research, Centro de Estudios Monetarios Latinoamericanos, CEMLA, edition 1, volume 1, number 7sp, December.
    5. Claudio Campanale, 2007. "Increasing Returns to Savings and Wealth Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(4), pages 646-675, October.
    6. Klenert, David & Mattauch, Linus & Edenhofer, Ottmar & Lessmann, Kai, 2018. "Infrastructure And Inequality: Insights From Incorporating Key Economic Facts About Household Heterogeneity," Macroeconomic Dynamics, Cambridge University Press, vol. 22(4), pages 864-895, June.
    7. Brant Abbott & Giovanni Gallipoli, 2022. "Permanent‐income inequality," Quantitative Economics, Econometric Society, vol. 13(3), pages 1023-1060, July.
    8. Apps, Patricia & Rees, Ray, 2004. "Life Cycle Time Allocation and Saving in an Imperfect Capital Market," IZA Discussion Papers 1036, Institute of Labor Economics (IZA).
    9. Aleksandra Kolasa & Barbara Liberda, 2014. "Determinants of saving in Poland: Are they different than in other OECD countries?," Working Papers 2014-13, Faculty of Economic Sciences, University of Warsaw.
    10. Francis, Johanna L., 2009. "Wealth and the capitalist spirit," Journal of Macroeconomics, Elsevier, vol. 31(3), pages 394-408, September.
    11. Börsch-Supan, Axel & Lusardi, Annamaria, 2002. "Saving Viewed from a Cross-National Perspective," Sonderforschungsbereich 504 Publications 02-47, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    12. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Determinants of Formal and Informal Saving in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 4, pages 95-123, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    13. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Factores determinantes del ahorro formal e informal en Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 4, pages 101-131, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    14. Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2011. "The relative income hypothesis," Journal of Economic Dynamics and Control, Elsevier, vol. 35(9), pages 1489-1501, September.
    15. Mauro Baranzini, 2005. "Modigliani's life-cycle theory of savings fifty years later," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 109-172.
    16. Rodriguez-Palenzuela, Diego & Dées, Stéphane & Andersson, Malin & Bijsterbosch, Martin & Forster, Katrin & Zorell, Nico & Audoly, Richard & Buelens, Christian & Compeyron, Guillaume & Ferrando, Annali, 2016. "Savings and investment behaviour in the euro area," Occasional Paper Series 167, European Central Bank.
    17. Sule Alan & Kadir Atalay & Thomas F. Crossley, 2006. "Do the Rich Save More in Canada?," Quantitative Studies in Economics and Population Research Reports 406, McMaster University.
    18. Schmidt-Hebbel, Klaus & Serven, Luis, 2000. "Does income inequality raise aggregate saving?," Journal of Development Economics, Elsevier, vol. 61(2), pages 417-446, April.
    19. Mauro Baranzini, 2005. "Modigliani's life-cycle theory of savings fifty years later," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 109-172.
    20. Bagchi Shantanu, 2017. "Can removing the tax cap save Social Security?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(2), pages 1-28, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sec:cnstan:0187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marta Kowerko (email available below). General contact details of provider: https://edirc.repec.org/data/caseepl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.