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Rural household savings dehavior in South Korea, 1962-1976

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  • Rural household savings dehavior in South Korea, 1962-1976
  • Hyun, K. N.; Adams, Dale W.; Hushak, L. J.; Ohio State University
  • United States Agency for International Development


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Title Rural household savings dehavior in South Korea, 1962-1976
Similar Titles
Material Type Reports
Author(English)

Hyun, K. N.; Adams, Dale W.; Hushak, L. J.; Ohio State University

Publisher

[Washington, D.C.]:United States Agency for International Development

Date 1978-07
Series Title; No Other USAID Supported Study, Document ; Economics and sociology occasional paper / 511
Pages 31
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Macroeconomics
Holding United States Agency for International Development

Abstract

Study documents the extent of voluntary rural household savings in South Korea based on data from the "Farm Household Economic Surveys" conducted by South Korea from 1962 to 1976. The study also uses this data to test a recently developed model for estimating permanent household income from cross-sectional data. The study concludes that farm households in South Korea have saved voluntarily a remarkably large part of their incomes since the early 1960's. During the late 1960's, these households saved, on the margin, about one-fifth of their permanent incomes and about four-fifths of their transitory incomes. The study also found that useful measures of permanent and transitory incomes can be estimated from cross-sectional data, and that these estimates can be helpful in better understanding savings behavior. The authors conjecture the reasons for the relataively high marginal propensities to save out of permanent income. One explanation relates to the parsimonious cultural traits unique to some oriental societies. Another explanation could be that other low-income countries simply lack reliable data on rural household savings behavior and that significant, unrecorded savings actually do occur. Lastly, South Korea appears to be very effective in providing savings incentives as well as offering convenient forms in which to hold savings. Policies which provide these incentives and opportunities could be largely transferable to other low-income countries. Report contains a 3-page listing of related references.