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Inconsistency in Savings Pattern: Is there an Endogeneity Bias?

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  • Inna Verbina

Abstract

Traditionally, the difference between income and expenditure reported in household surveys is used for estimation of savings at the household level. However, persistent deviation in consumption-income ratios by household income brackets raises questions about both the quality of data and the estimation method employed. This paper provides statistical evidence to accentuate the endogeneity bias, which is connected with the choice of welfare proxy for ranking process, in savings estimates by income groups.

Suggested Citation

  • Inna Verbina, 2003. "Inconsistency in Savings Pattern: Is there an Endogeneity Bias?," WIDER Working Paper Series DP2003-39, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-39
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-039.pdf
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    Cited by:

    1. Ricardo Bebczuk & Leonardo Gasparini & Noelia Garbero & Julian Amendolaggine, 2015. "Understanding the Determinants of Household Saving: Micro Evidence for Latin America," CEDLAS, Working Papers 0189, CEDLAS, Universidad Nacional de La Plata.

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