<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The recent linear growth trend recorded by net savings in Romania is very intriguing. We thus study household savings behavior using Vector Autoregression and Vector Error Correction models on a sample of post-2007 monthly data. Contrary to common economic theory, we find that real interest rates do not influence the loan and savings behavior of Romanian households in our sample, despite their significant volatility and, even, negative recorded values. The results indicate a change in attitude and in risk perception of Romanian households in the aftermath of the financial crisis in 2008, in the way that has significantly decreased their preference for present consumption in favor of savings. Despite the significant increase in net savings, we also find that they have not significantly contributed to economic growth.</p></abstract>

The recent linear growth trend recorded by net savings in Romania is very intriguing. We thus study household savings behavior using Vector Autoregression and Vector Error Correction models on a sample of post-2007 monthly data. Contrary to common economic theory, we find that real interest rates do not influence the loan and savings behavior of Romanian households in our sample, despite their significant volatility and, even, negative recorded values. The results indicate a change in attitude and in risk perception of Romanian households in the aftermath of the financial crisis in 2008, in the way that has significantly decreased their preference for present consumption in favor of savings. Despite the significant increase in net savings, we also find that they have not significantly contributed to economic growth.

Post-Crisis Household Savings Behavior in Romania

Institute for Economic Forecasting, Romanian Academy, Department of Money and Banking

The Bucharest University of Economic Studies

Proceedings of the International Conference on Applied Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Post-Crisis Household Savings Behavior in Romania"}

The recent linear growth trend recorded by net savings in Romania is very intriguing. We thus study household savings behavior using Vector Autoregression and...

Post-Crisis Household Savings Behavior in Romania

Published Online: Feb 13, 2020

Page range: 17 - 33

DOI: https://doi.org/10.2478/icas-2019-0003

Keywords
Household Savings, Credit, Deposits, VECM, Romania

© 2019 Dan-Gabriel Anghel et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Post-Crisis Household Savings Behavior in Romania

Published Online: Feb 13, 2020

Page range: 17 - 33

DOI: https://doi.org/10.2478/icas-2019-0003

KeywordsHousehold Savings, Credit, Deposits, VECM, Romania

© 2019 Dan-Gabriel Anghel et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Household Savings, Credit, Deposits, VECM, Romania