Interest Rates and Household Saving Behaviour: An Empirical Puzzle and a Solution Using Czech Data

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F20%3A10246230" target="_blank" >RIV/61989100:27510/20:10246230 - isvavai.cz</a>

Výsledek na webu

<a href="https://pep.vse.cz/artkey/pep-202005-0003_interest-rates-and-household-saving-behaviour-an-empirical-puzzle-and-a-solution-using-czech-data.php" target="_blank" >https://pep.vse.cz/artkey/pep-202005-0003_interest-rates-and-household-saving-behaviour-an-empirical-puzzle-and-a-solution-using-czech-data.php</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.pep.741" target="_blank" >10.18267/j.pep.741</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Interest Rates and Household Saving Behaviour: An Empirical Puzzle and a Solution Using Czech Data

Popis výsledku v původním jazyce

This paper investigates the transmission from interest rates to household saving behaviour when introducing two main innovations of analysing this relationship. The first one is based on the use of a set of client interest rates instead of one monetary policy rate. This step enables us to distinguish impacts of the substitution and income effects in more detail. The second major innovation lies in the division of households into income categories, which provides us with more observations and thus makes it possible to conduct this analysis even for a single country. Using the generalized method of moments for the dynamic panel data, we analyse Czech household behaviour for the period 2004-2015. The results highlight that when we ignore details of the transmission channel and use only a monetary policy rate, we lose crucial information about contradictory impacts of the substitution and income effects that are primarily reflected in the client interest rates. This fact may clarify most of the interest rate-savings rate puzzle.

Název v anglickém jazyce

Interest Rates and Household Saving Behaviour: An Empirical Puzzle and a Solution Using Czech Data

Popis výsledku anglicky

This paper investigates the transmission from interest rates to household saving behaviour when introducing two main innovations of analysing this relationship. The first one is based on the use of a set of client interest rates instead of one monetary policy rate. This step enables us to distinguish impacts of the substitution and income effects in more detail. The second major innovation lies in the division of households into income categories, which provides us with more observations and thus makes it possible to conduct this analysis even for a single country. Using the generalized method of moments for the dynamic panel data, we analyse Czech household behaviour for the period 2004-2015. The results highlight that when we ignore details of the transmission channel and use only a monetary policy rate, we lose crucial information about contradictory impacts of the substitution and income effects that are primarily reflected in the client interest rates. This fact may clarify most of the interest rate-savings rate puzzle.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA19-19485S" target="_blank" >GA19-19485S: Prostorová dynamika a nerovnost: Role konektivity a přístupu k financím</a><br>

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

Prague Economic Papers

ISSN

1210-0455

e-ISSN

—

Svazek periodika

29

Číslo periodika v rámci svazku

5

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

16

Strana od-do

545-560

Kód UT WoS článku

000581722800003

EID výsledku v databázi Scopus

2-s2.0-85092568234