Title: Modelling impact of economic and demographic factors on personal saving rate in the euro area

Authors: Renáta Pitoňáková

Addresses: Faculty of Social and Economic Sciences, Comenius University in Bratislava, Mlynské luhy 4, 821 05 Bratislava, Slovakia

Abstract: The decision of economic subjects whether to consume or save is determined by different economic, monetary, and demographic factors. The paper focuses upon personal saving rate of the whole euro area taking into account economic and demographic aspects. The modelling uses quarterly data within 2005 Q1-2017 Q2. The results indicate a negative relation between savings and dependency ratio of elderly suggesting savings for retirement. Government spending pushes savings up, inflation causes dissaving. Implications are for governing bodies directing measures for investment and consumption, for pension systems when managing sustainability of pension funds due to population ageing and for households when deciding about savings or consumption.

Keywords: finance; personal saving rate; dependency ratio; inflation; government expenditures; euro area.

DOI: 10.1504/IJTGM.2019.101556

International Journal of Trade and Global Markets, 2019 Vol.12 No.3/4, pp.333 - 344

Received: 26 Oct 2018
Accepted: 15 Jan 2019
Published online: 12 Aug 2019 *

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