The Measurement of Permanent Income and Its Application to Savings Behavior

Bhalla, Surjit S.

doi:10.1086/260899

Cited by 103 publications

(33 citation statements)

References 6 publications

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“…However, she rejects a strong version of a permanent income model which posits that propensities to consume out of permanent income are exactly one. Bhalla (1979Bhalla ( , 1980, using a three-year panel from India, finds evidence of consumption smoothing, but also finds that the consumption of poorer households tracks income more closely than does the consumption of wealthier households. This evidence suggests that credit constraints might be binding for poorer households.…”

Section: Management Of In Riskmentioning

confidence: 99%

Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries

Alderman

Paxson

1994

Economics in a Changing World

239

220

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Section: Management Of In Riskmentioning

confidence: 99%

Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries

Alderman

Paxson

1994

Economics in a Changing World

239

220

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“…The average nominal rate of interest paid by commercial banks on savings deposits was 3.24 percent for the same period. 4 See Mincer (1974); Musgrove (1979);Bhalla (1980);and Paxson (1990;1992). Include years of publications 5 Musgrove (1979) states that permanent income can be known only with an error that is conceptually different from transitory income.…”

Section: Resultsmentioning

confidence: 99%

Determinants of Net Savings Deposits held in Savings and Credit Cooperatives (SACCOs) in Uganda

Mpiira¹,

Kiiza²,

Katungi³

et al. 2014

J. Econ. Int. Finance

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Savings mobilization is important for rural households in Uganda. This study looked at household net savings deposits in Savings and credit cooperatives (SACCO's) from individual's passbooks. Net savings were then measured as the difference between deposits and withdrawals. Weighted least squares were used to determine the factors influencing net deposits. Results indicate that deposits decreased with increase in distance to the SACCO, education levels, wealth, trade activities, and having secondary school dependants. Deposits increased with income, access to credit. SACCO's are well suited for poor households in terms of products and services offered. There was a higher propensity to save out of transitory income.

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“…Musgrove (1979) used variables such as age, education and occupation to estimate permanent income models for a cross-section of South American households. Bhalla (1980), using panel data (3 years) on Indian households, calculated two different measures of permanent income. The first method is based on estimates of an earnings equation and the second is based on a weighted average of past income.…”

Section: Model Specificationmentioning

confidence: 99%

Estimating permanent income and wealth of the US farm households

Mishra

Paudel

2011

Applied Economics

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Farm households are unique in the way they derive income when compared to nonfarm households. Farm operators and spouses have dual income sources, from farm and off-farm activities. Further, farm households on an average possess higher wealth than nonfarm households. This article estimates permanent income for the US farm households using data from a large national farm level survey. The estimated income is then used to identify the determinants of wealth accumulation by the US farm households. Results confirm that permanent income is closely related to age of the operator, education, occupation, farm size, location and number of earners in the household. Along with age, permanent income is a significant determinant of household wealth. It was also found that the wealth-income curve is nonlinear, upward sloping, and convex. Hausman's specification test indicates that variations in farm household wealth is better explained by estimated permanent income than observed total household income. Off-farm income cannot be treated as residual or transitory income.

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The Measurement of Permanent Income and Its Application to Savings Behavior

Cited by 103 publications

References 6 publications

Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries

Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries

Determinants of Net Savings Deposits held in Savings and Credit Cooperatives (SACCOs) in Uganda

Estimating permanent income and wealth of the US farm households

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