Predicting minimum savings in Thai villages
Name
939917665-MIT.pdf
Description
Full printable version
Size
2.66 MB
Format
Adobe PDF
Checksum (MD5)
469637947f2c2adbdfc74b53d3990367
Author(s)
Sripakdeevong, Parit
Advisor(s)
Robert Townsend.
Date Issued
2015
Publisher
Massachusetts Institute of Technology
Abstract
Amador Werning Angeletos (2006) characterize the conditions under which optimal saving/ consumption decision are determined by a minimum savings policy. I test this model empirically against data from the Townsend Thai Monthly Survey. Each household's income distribution, measure of risk aversion. and hyperbolic discount rate are estimated and then inputted into the model. In the overall sample., the minimum saving value as predicted by the model does register a statistically signficant relationship with the actual amount saved by the household. This is expected. since minimum saving policy is not optimal for all households. Limiting the sample to the appopriate subgroup produces a strong positive correlation.
Description
Thesis: S.M., Massachusetts Institute of Technology, Department of Economics, 2015.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 19).
Subjects
Economics.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
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