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Title: Dynamics of Household Saving Behavior
Resulting in 1 citation.
1. Mullis, Randolph J.
Dynamics of Household Saving Behavior
Ph.D. Dissertation, University of Missouri - Columbia, 1984
Cohort(s): Older Men
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Assets; Behavior; Household Income; Life Cycle Research; Retirees; Retirement/Retirement Planning; Social Security

The purpose of this research was to identify the correlates of household behavior. Factors related to both the level of savings at several points in time and saving behavior over time were explored. Four cross section analyses and three longitudinal analyses were conducted to identify the correlates of household saving(s). Development of a conceptual framework, the Household Economic Activity Model (HEAM), provided theoretical organization for the analyses. Concepts from the Permanent Income Hypothesis, and Life Cycle Income Hypothesis were operationalized together with propositions developed out of the HEAM in order to explore factors related to household saving(s). Four waves of NLS data, (1966, 1971, 1976, and 1981), gathered from the Older Men cohort, were used in the analyses. The objectives of the study included: to identify the associations between cross section values of household socioeconomic variables and household savings at each point of data collection; and to identify the relationships between socioeconomic characteristics of households, and changes in them, and household saving behavior over time. Three levels of analyses were performed. First, a simple descriptive analyses of the dependent variables, net assets and change in net assets, were partitioned by age groups in order to examine trends over time. Next, several multiple regression models were developed to identify the correlates of savings. Lastly, two different statistical techniques were used to explore saving behavior over time: the first, a two stage least-square technique utilized to avoid auto-correlated error terms; and the second, an ordinary least-squares model which incorporated raw change variables together with corresponding base period static variables. The findings: (1) raised serious questions about the life cycle income hypothesis because evidence abounded suggesting that retirees do not dissave; (2) identified interesting differences between private pension eligibility and social security eligibility as they relate to saving(s); (3) provided vital information about treating cross section findings in a temporal manner; (4) pointed out the impact of macro-economic phenomena on household economic behavior; and (5) suggested the possibility that respondents save less in response to higher interest rates.
Bibliography Citation
Mullis, Randolph J. Dynamics of Household Saving Behavior. Ph.D. Dissertation, University of Missouri - Columbia, 1984.