Precautionary Saving from Different Sources of Income
Richard H. Adams
Jan 2002 · World Bank Publications
Ebook
23
Pages
About this ebook
Much of past literature has assumed that households in developing countries save at the same marginal rate from all sources of income. But in rural Pakistan households save at very different marginal rates from different sources of income. The marginal propensity to save from those sources of income that are more variable and uncertain --- like external remittances --- is much higher than from those sources of income that are more predictable --- like rental income.
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