Savings in Latvia

Discussion Paper 1/2009

Abstract: A high saving rate is the foundation of a sustainable national social and economic policy. Nevertheless, boosting saving is not an end in itself. The process of making savings should be analysed taking into account several related aspects. This paper aims at conducting a detailed and comprehensive analysis of saving behaviour in Latvia and its estimation in the global context. Household saving behaviour and saving habits are in a particular focus and are examined econometrically using a unique source of Latvia's micro data, i.e. household budget surveys.

Key words: savings, household saving habits, micro data, cross-section model.

JEL classification codes: C21, D12, D14, E21, O16