Determinants of private savings behaviour in Turkey
This study investigates the effects on private saving rates of a number of policy and non-policy variables. The analysis covers the period 1968-1994. The empirical private saving model for Turkey is estimated. The findings support the hypothesis that private saving rates have strong inertia. The evidence indicates that government saving does not tend to crowd out private savings and the Ricardian equivalence does not hold strictly. Income level has a positive impact on private saving rate, and growth rate of income is not statistically significant. From a policy point of view, financial depth and development measures in Turkey suggest that countries with deeper financial systems tend to have higher private saving rates. Private credit and real interest rates try to capture the severity of the borrowing constraints and the degree of financial repression for Turkey. Moreover, the negative impact of life expectancy rate lends support to the life-cycle hypothesis. The precautionary motive for saving is supported by the findings that inflation captures the degree of macroeconomic volatility and has a positive impact on private saving in Turkey.
Year of publication: |
2003
|
---|---|
Authors: | Ozcan, Kivilcim Metin ; Gunay, Asli ; Ertac, Seda |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 35.2003, 12, p. 1405-1416
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Determinants of private savings behaviour in Turkey
Ozcan, Kivilcim Metin, (2003)
-
Determinants of private savings behaviour in Turkey
Metin-Özcan, Kıvılcım, (2003)
-
Does Time Inconsistency Problem Apply For Turkish Monetary Policy?
Özlale, Ümit, (2005)
- More ...