1969Journal of the American Statistical AssociationRequires access

An Econometric Exploration of Indian Saving Behavior

R. Ramanathan

Open publisher page 9 citations

Abstract

The purpose of the study is to throw some light on the saving behavior of urban Indian households. The nature of the effects on saving of income and net worth and their interactions are examined in detail for different socio-economic sub-groups. There is strong evidence that income and net worth significantly influence the level of saving. Contrary to the studies in advanced countries, home-owners had a much lower saving-income ratio than renters although the former had a slightly higher average income. A major reason for this may be the uncommon-ness of amortized mortgages in India, with no contractual commitment to save. Except for age 65 or over, mean income, saving and the saving-income ratio increased with age up to 45 years and thereafter declined. The age group 65 or over had a higher average income and saved the highest proportion of income. This is perhaps due to the prevalence of joint families in India.

About this research paper

What this paper is about

The purpose of the study is to throw some light on the saving behavior of urban Indian households. The nature of the effects on saving of income and net worth and their interactions are examined in detail for different socio-economic sub-groups. There is strong evidence that income and net worth significantly influence the level of saving. Contrary to the studies in advanced countries, home-owners had a much lower saving-income ratio than renters although the former had a slightly higher average income. A major reason for this may be the uncommon-ness of amortized mortgages in India, with no contractual commitment to save. Except for age 65 or over, mean income, saving and the saving-income ratio increased with age up to 45 years and thereafter declined. The age group 65 or over had a higher average income and saved the highest proportion of income. This is perhaps due to the prevalence of joint families in India.

Why it matters

OpenAlex reports 9 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

The purpose of the study is to throw some light on the saving behavior of urban Indian households. The nature of the effects on saving of income and net worth and their interactions are examined in detail for different socio-economic sub-groups. There is strong evidence that income and net worth significantly influence the level of saving. Contrary to the studies in advanced countries, home-owners had a much lower saving-income ratio than renters although the former had a slightly higher average income. A major reason for this may be the uncommon-ness of amortized mortgages in India, with no contractual commitment to save. Except for age 65 or over, mean income, saving and the saving-income ratio increased with age up to 45 years and thereafter declined. The age group 65 or over had a higher average income and saved the highest proportion of income. This is perhaps due to the prevalence of joint families in India.

Key concepts: Net income, Economics, Demographic economics, Net worth, Permanent income hypothesis, Socioeconomics, Labour economics, Finance

Related papers

Back to paper searchBrowse research topicsOriginal source
An Econometric Exploration of Indian Saving Behavior — Research Paper | ScholarLens