Solow in Transition : Macro and Micro Determinants of Savings in Armenia
This paper analyzes and reconciles macro and micro evidence on savings and factors that affect savings, as well as possible policy implications. At the aggregate level, the main question is how savings are affected by growth and macroeconomic polic...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/07/18006629/solow-transition-macro-micro-determinants-savings-armenia http://hdl.handle.net/10986/15889 |
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okr-10986-15889 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECTS AGGREGATE DEMAND AGRICULTURE BANKING SECTOR BASE YEAR BORROWING BORROWINGS BUDGET DEFICITS BUSINESS INVESTMENT CAPITAL MARKET CASH FLOW CENTRAL BANK COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS CONSUMER DURABLES CONSUMERS CREDIT CONSTRAINT CREDIT INSTITUTIONS CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DEBT DEBT RATIO DEBT SERVICING DEBTS DEMAND FOR FUNDS DEPOSIT DEPOSIT RATE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DIVERSIFICATION DIVERSIFIED INCOME DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS ECONOMETRIC MODELS ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL LEVELS EMERGING MARKETS EMPLOYEE EMPLOYMENT STATUS EXCHANGE MARKET EXCHANGE RATE EXPANSIONARY MONETARY POLICY EXPATRIATE EXPLOITATION EXPORTS EXPOSURE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAMILY INCOME FINANCES FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EXPOSURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RETURNS FINANCIAL SECTOR FINANCIAL SERVICES FISCAL DEFICIT FISCAL POLICY FORMAL SAVING GDP GDP PER CAPITA GOVERNMENT FINANCES GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET GREATER ACCESS GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE GROWTH RATES HOLDINGS HOME OWNERSHIP HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME EFFECT INCOME LEVEL INCOME LEVELS INCOME STREAM INCOME STREAMS INCOME VARIABILITY INCOMES INFLATION INFLATION EXPECTATIONS INFLATION TARGETING INFORMAL CREDIT INTEREST RATE INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT PROJECTS LEVEL OF ASSETS LIFE CYCLE HYPOTHESIS LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOW-INCOME COUNTRIES MACROECONOMIC ANALYSIS MACROECONOMIC ENVIRONMENT MACROECONOMIC POLICIES MACROECONOMICS MARKET CAPITALIZATION MARKET PRICE MICRO-CREDIT MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY POLICY NATIONAL POVERTY NET EXPORTS OLD AGE OPEN ECONOMY OPEN MARKET OPEN MARKET OPERATIONS OPTIMIZATION OUTPUT PENSION PENSION REFORM PENSION SYSTEM PENSIONS PERMANENT INCOME PERMANENT INCOME HYPOTHESES PERMANENT INCOME HYPOTHESIS PIH POLITICAL ECONOMY POOR POTENTIAL INVESTMENTS POVERTY REDUCTION PRIVATE SAVING PRIVATE SAVINGS PUBLIC DEFICIT PUBLIC SAVING PUBLIC SAVINGS REAL ESTATE REAL EXCHANGE RATE REMITTANCES RETURN RURAL RURAL AREA RURAL AREAS SAVINGS SAVINGS RATE SAVINGS RATES SECURITIES MARKET STOCK EXCHANGE SUBSTITUTION EFFECT SUSTAINABLE GROWTH TAXATION TIME DEPOSIT TRADE POLICY TRADING TRANSITION ECONOMIES URBANIZATION VOLATILITY WEALTH WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
ADVERSE EFFECTS AGGREGATE DEMAND AGRICULTURE BANKING SECTOR BASE YEAR BORROWING BORROWINGS BUDGET DEFICITS BUSINESS INVESTMENT CAPITAL MARKET CASH FLOW CENTRAL BANK COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS CONSUMER DURABLES CONSUMERS CREDIT CONSTRAINT CREDIT INSTITUTIONS CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DEBT DEBT RATIO DEBT SERVICING DEBTS DEMAND FOR FUNDS DEPOSIT DEPOSIT RATE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DIVERSIFICATION DIVERSIFIED INCOME DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS ECONOMETRIC MODELS ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL LEVELS EMERGING MARKETS EMPLOYEE EMPLOYMENT STATUS EXCHANGE MARKET EXCHANGE RATE EXPANSIONARY MONETARY POLICY EXPATRIATE EXPLOITATION EXPORTS EXPOSURE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAMILY INCOME FINANCES FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EXPOSURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RETURNS FINANCIAL SECTOR FINANCIAL SERVICES FISCAL DEFICIT FISCAL POLICY FORMAL SAVING GDP GDP PER CAPITA GOVERNMENT FINANCES GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET GREATER ACCESS GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE GROWTH RATES HOLDINGS HOME OWNERSHIP HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME EFFECT INCOME LEVEL INCOME LEVELS INCOME STREAM INCOME STREAMS INCOME VARIABILITY INCOMES INFLATION INFLATION EXPECTATIONS INFLATION TARGETING INFORMAL CREDIT INTEREST RATE INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT PROJECTS LEVEL OF ASSETS LIFE CYCLE HYPOTHESIS LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOW-INCOME COUNTRIES MACROECONOMIC ANALYSIS MACROECONOMIC ENVIRONMENT MACROECONOMIC POLICIES MACROECONOMICS MARKET CAPITALIZATION MARKET PRICE MICRO-CREDIT MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY POLICY NATIONAL POVERTY NET EXPORTS OLD AGE OPEN ECONOMY OPEN MARKET OPEN MARKET OPERATIONS OPTIMIZATION OUTPUT PENSION PENSION REFORM PENSION SYSTEM PENSIONS PERMANENT INCOME PERMANENT INCOME HYPOTHESES PERMANENT INCOME HYPOTHESIS PIH POLITICAL ECONOMY POOR POTENTIAL INVESTMENTS POVERTY REDUCTION PRIVATE SAVING PRIVATE SAVINGS PUBLIC DEFICIT PUBLIC SAVING PUBLIC SAVINGS REAL ESTATE REAL EXCHANGE RATE REMITTANCES RETURN RURAL RURAL AREA RURAL AREAS SAVINGS SAVINGS RATE SAVINGS RATES SECURITIES MARKET STOCK EXCHANGE SUBSTITUTION EFFECT SUSTAINABLE GROWTH TAXATION TIME DEPOSIT TRADE POLICY TRADING TRANSITION ECONOMIES URBANIZATION VOLATILITY WEALTH WORLD DEVELOPMENT INDICATORS Coulibaly, Souleymane Diaby, Mohamed Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| geographic_facet |
Europe and Central Asia Armenia |
| relation |
Policy Research Working Paper;No. 6531 |
| description |
This paper analyzes and reconciles macro
and micro evidence on savings and factors that affect
savings, as well as possible policy implications. At the
aggregate level, the main question is how savings are
affected by growth and macroeconomic policies and variables
(fiscal policy, exchange rate, for example) and the breadth
of financial markets. Some of these macro determinants can
be reconciled with microeconomic evidence of the savings
behavior of households. Using macroeconomic quarterly data
and household survey data, the analysis explores the
determinants of the savings rate at the macroeconomic and
microeconomic levels, using the typical econometric models
used in the literature (long-term co-integration relation
and short-term error correction model for the macro
determinants; linear multivariate models for the micro
determinants). The long-term relationship indicates that a
10-percent increase in gross domestic product per capita
would add 3.7 percentage points to the savings rate in the
long run. The short-term relationship depicts a strong
catch-up process to the long-run equilibrium, with quarterly
changes in gross domestic product per capita and openness
strongly correlated with quarterly changes in the savings
rate. The characteristics of households that represent the
volatility of expected income, such as education and access
to borrowing or remittances, significantly impact saving
rates. The macroeconomic and microeconomic analyses of the
determinants of saving rates in Armenia point to three
policy areas: the macroeconomic environment, the financial
sector, and the role of remittances. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Coulibaly, Souleymane Diaby, Mohamed |
| author_facet |
Coulibaly, Souleymane Diaby, Mohamed |
| author_sort |
Coulibaly, Souleymane |
| title |
Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| title_short |
Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| title_full |
Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| title_fullStr |
Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| title_full_unstemmed |
Solow in Transition : Macro and Micro Determinants of Savings in Armenia |
| title_sort |
solow in transition : macro and micro determinants of savings in armenia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/07/18006629/solow-transition-macro-micro-determinants-savings-armenia http://hdl.handle.net/10986/15889 |
| _version_ |
1764431874595225600 |
| spelling |
okr-10986-158892021-04-23T14:03:26Z Solow in Transition : Macro and Micro Determinants of Savings in Armenia Coulibaly, Souleymane Diaby, Mohamed ADVERSE EFFECTS AGGREGATE DEMAND AGRICULTURE BANKING SECTOR BASE YEAR BORROWING BORROWINGS BUDGET DEFICITS BUSINESS INVESTMENT CAPITAL MARKET CASH FLOW CENTRAL BANK COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS CONSUMER DURABLES CONSUMERS CREDIT CONSTRAINT CREDIT INSTITUTIONS CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DEBT DEBT RATIO DEBT SERVICING DEBTS DEMAND FOR FUNDS DEPOSIT DEPOSIT RATE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISPOSABLE INCOME DIVERSIFICATION DIVERSIFIED INCOME DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS ECONOMETRIC MODELS ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVEL EDUCATION LEVELS EDUCATIONAL LEVELS EMERGING MARKETS EMPLOYEE EMPLOYMENT STATUS EXCHANGE MARKET EXCHANGE RATE EXPANSIONARY MONETARY POLICY EXPATRIATE EXPLOITATION EXPORTS EXPOSURE EXTERNAL FINANCING EXTERNAL SHOCKS FAMILIES FAMILY INCOME FINANCES FINANCIAL ACCESS FINANCIAL CRISIS FINANCIAL EXPOSURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL RETURNS FINANCIAL SECTOR FINANCIAL SERVICES FISCAL DEFICIT FISCAL POLICY FORMAL SAVING GDP GDP PER CAPITA GOVERNMENT FINANCES GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET GREATER ACCESS GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE GROWTH RATES HOLDINGS HOME OWNERSHIP HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SAVING HOUSEHOLD SAVINGS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLDS INCOME EFFECT INCOME LEVEL INCOME LEVELS INCOME STREAM INCOME STREAMS INCOME VARIABILITY INCOMES INFLATION INFLATION EXPECTATIONS INFLATION TARGETING INFORMAL CREDIT INTEREST RATE INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT PROJECTS LEVEL OF ASSETS LIFE CYCLE HYPOTHESIS LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOW-INCOME COUNTRIES MACROECONOMIC ANALYSIS MACROECONOMIC ENVIRONMENT MACROECONOMIC POLICIES MACROECONOMICS MARKET CAPITALIZATION MARKET PRICE MICRO-CREDIT MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY POLICY NATIONAL POVERTY NET EXPORTS OLD AGE OPEN ECONOMY OPEN MARKET OPEN MARKET OPERATIONS OPTIMIZATION OUTPUT PENSION PENSION REFORM PENSION SYSTEM PENSIONS PERMANENT INCOME PERMANENT INCOME HYPOTHESES PERMANENT INCOME HYPOTHESIS PIH POLITICAL ECONOMY POOR POTENTIAL INVESTMENTS POVERTY REDUCTION PRIVATE SAVING PRIVATE SAVINGS PUBLIC DEFICIT PUBLIC SAVING PUBLIC SAVINGS REAL ESTATE REAL EXCHANGE RATE REMITTANCES RETURN RURAL RURAL AREA RURAL AREAS SAVINGS SAVINGS RATE SAVINGS RATES SECURITIES MARKET STOCK EXCHANGE SUBSTITUTION EFFECT SUSTAINABLE GROWTH TAXATION TIME DEPOSIT TRADE POLICY TRADING TRANSITION ECONOMIES URBANIZATION VOLATILITY WEALTH WORLD DEVELOPMENT INDICATORS This paper analyzes and reconciles macro and micro evidence on savings and factors that affect savings, as well as possible policy implications. At the aggregate level, the main question is how savings are affected by growth and macroeconomic policies and variables (fiscal policy, exchange rate, for example) and the breadth of financial markets. Some of these macro determinants can be reconciled with microeconomic evidence of the savings behavior of households. Using macroeconomic quarterly data and household survey data, the analysis explores the determinants of the savings rate at the macroeconomic and microeconomic levels, using the typical econometric models used in the literature (long-term co-integration relation and short-term error correction model for the macro determinants; linear multivariate models for the micro determinants). The long-term relationship indicates that a 10-percent increase in gross domestic product per capita would add 3.7 percentage points to the savings rate in the long run. The short-term relationship depicts a strong catch-up process to the long-run equilibrium, with quarterly changes in gross domestic product per capita and openness strongly correlated with quarterly changes in the savings rate. The characteristics of households that represent the volatility of expected income, such as education and access to borrowing or remittances, significantly impact saving rates. The macroeconomic and microeconomic analyses of the determinants of saving rates in Armenia point to three policy areas: the macroeconomic environment, the financial sector, and the role of remittances. 2013-09-26T20:14:15Z 2013-09-26T20:14:15Z 2013-07 http://documents.worldbank.org/curated/en/2013/07/18006629/solow-transition-macro-micro-determinants-savings-armenia http://hdl.handle.net/10986/15889 English en_US Policy Research Working Paper;No. 6531 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Armenia |