Panel Analysis of the Influence of Macroeconomic Factors on the Household Savings
Panel Analysis of the Influence of Macroeconomic Factors on the Household Savings

Summary/Abstract: The current deepening fall in real consumption is caused by slight increase in nominal disposable income, increased inflation, as well as by the tax changes and developments in the savings rate. Looking at the savings rate in the Euro zone different household responses could be observed. This paper focuses on monitoring of the development of disposable income, household consumption and savings in the Visegrad Four countries in the period 2005−2014. The analysis covers impact of selected macroeconomic indicators (gross domestic product, disposable income, inflation rate, and unemployment rate) on volume of household savings using the panel regression. Within the analysis three models were used: pooling model (PM), fixed effects model (FEM), and random- effects model (REM). Performance of the analysis proved that in all three models the GDP has a statistically significant impact on household saving. The GDP increase by € 1 million caused an increase in gross domestic savings by € 0.20464 million.

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