Savings, Business Cycle and the Rate of Unemloyment
|Author:||Bc. Michaela Kubištová|
|Year:||2004 - summer|
|Leaders:|| doc. Ing. Vladislav Flek CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This dissertation tries to analyze the behaviour of households´ savings. The study is dividend into four parts. The first part contains main economic theories, which are focused on the behaviour of savings and their determinants.
In the next chapter there is modern savings function based on Permanent Income Hypothesis by Milton Friedman and Life Cycle Hypothesis by Franco Modigliani. This savings function is enriched by my own hypothesis based on theories made by Abraham H. Maslow. This hypothesis suggests a significant influence of economic cycle and consumer sentiment index on savings´ behaviour.
The next part of my study concerns descriptive analysis of savings and their determinants from 1993 till 2003.
The study is finished by testing and comparing two econometric models. One is based on simple savings function a the second one includes consumer sentiment index in addition. The simpler model turned to be better than extended one and it has very high ability of explanation. In spite of this fact, this model doesn´t ratify the economic theory.
|Downloadable:|| Michaela Kubištová