Original scientific paper

https://doi.org/10.3326/pse.48.3.1

The puzzle of household savings in the European Union: tracing influences across time and space

Ana Skoblar ; Croatian National Bank, Zagreb, Croatia

Abstract

This paper uses dynamic panel data estimations based on annual data from 26 European Union countries to evaluate the driving factors of household savings dynamics. Alongside conventional determinants, such as household income and age dependency, the study also includes a less traditional variable, consumer confidence, which is often neglected in existing findings. This research extends previous empirical studies in three dimensions. First, it conducts sensitivity analysis using several estimation techniques to support the robustness of baseline results. Second, the investigation is expanded by including an extended set of potential savings drivers. Lastly, it explores variations in saving behaviour among different country groups (Euro Area, Central and Eastern European countries, and Croatia) as well as the crisis periods (Global Financial Crisis and Covid-19 pandemic). The findings highlight the importance of overlooked determinants, shed light on the ambiguous effect of classic variables, and partially confirm earlier research.

Keywords

household saving; GMM; dynamic panel analysis; macroeconomic variables

Hrčak ID:

320486

URI

https://hrcak.srce.hr/320486

Publication date:

5.9.2024.

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