Client Interest Rates and Household Behavior: The Case of the Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F18%3A10239893" target="_blank" >RIV/61989100:27510/18:10239893 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Client Interest Rates and Household Behavior: The Case of the Czech Republic
Original language description
This paper deals with the question of causal relationship of interest rates and consumption-saving behavior of households. Although this issue has been at the forefront of empirical research for decades, yet many aspects of this relationship still remain the source of a broad polemic. One of the most questionable is the true nature of transmission from interest rates to tendency to saving. Above all due to the contradictory impacts of the substitution and income effect, the empirical results of classical approaches using single monetary-policy interest rate have been ambiguous, not very robust and thus not quite stable. However, the actual problem doesn't have to lie in the unclear nature of the relationship itself, but rather in the way we examine it. The aim of this study is to test a new method of verifying this relationship by dividing households into income categories according to their position in distribution of disposable income combined with the use of different types of client interest rates doing so on the example of the Czech Republic. As indicated by the initial results achieved through panel GMM regression, this new approach could become a relevant contribution to our understanding of transmission from interest rates to distribution of disposable income and thus to creation of aggregate demand.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Mathematical Methods in Economics : MME 2018 : 36th international conference : September 12-14, 2018, Jindřichův Hradec
ISBN
978-80-7378-371-6
ISSN
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e-ISSN
neuvedeno
Number of pages
6
Pages from-to
1-6
Publisher name
MATFYZPRESS
Place of publication
Praha
Event location
Jindřichův Hradec
Event date
Sep 12, 2018
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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