Private Savings in Eastern European EU-Accession Countries : Evidence From a Dynamic Panel Data Model

Arbeitspapier

After the collapse in early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. Is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. Main results are: saving rates are persistent; income growth increases saving, whereas public saving crowds out private saving. Domestic saving and foreign capital operate as substitutes. Long-run effects of income growth and public saving are larger in the EU than in the candidate countries, indicating that saving behavior in the EU is determined to a larger extent by long-run perspectives than in the candidate countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 372

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Macroeconomics: Consumption; Saving; Wealth
• Subject: Dynamic panel data model ; private savings ; Eastern European EU-accession countries ; GMM estimator ; Sparen ; Einkommenshypothese ; Schätzung ; Vergleich ; Osteuropa ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stephan, Sabine ; Schrooten, Mechthild
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/18129
• Last update: 10.03.2025, 11:42 AM CET