Regression Analysis of Factors Influencing Volume of Households' Savings in the V4 Countries

Abstract

In the Visegrad Four countries (V4) as well as all across the Euro area the household savings rate declined to a level of 12,8% in 2014, despite the fact that the real household income per capita in the Euro area increased by 0,2 %. Aim of the submitted article concerns the empirical analysis of the relationship between savings and selected macroeconomic factors. The analysis provides a complete view to assess developments in household savings in the Visegrad Four countries within the period 2005–2014 and subsequently assess the impact of selected macroeconomic factors using multivariate regression analysis. Analysis solves linear relationship between savings as a dependent variable, and independent variables such as disposable income, gross domestic product, unemployment rate and inflation rate. Results of the analysis confirmed that a statistically significant model parameters and the most important determinant with strongly positive impact in all the surveyed countries was the disposable income.

DOI: 10.5901/mjss.2016.v7n1p213