Client Interest Rates and Household Behavior: The Case of the Czech Republic

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Client Interest Rates and Household Behavior: The Case of the Czech Republic

Popis výsledku v původním jazyce

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&apos;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.

Název v anglickém jazyce

Client Interest Rates and Household Behavior: The Case of the Czech Republic

Popis výsledku anglicky

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&apos;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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

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

Počet stran výsledku

6

Strana od-do

1-6

Název nakladatele

MATFYZPRESS

Místo vydání

Praha

Místo konání akce

Jindřichův Hradec

Datum konání akce

12. 9. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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