Previous page | New search |
The free AfricaBib App for Android is available here
Periodical article | Leiden University catalogue | WorldCat |
Title: | Saving and Income Smoothing in Côte d'Ivoire |
Author: | Deaton, Angus S. |
Year: | 1992 |
Periodical: | Journal of African Economies |
Volume: | 1 |
Issue: | 1 |
Period: | March |
Pages: | 1-24 |
Language: | English |
Geographic term: | Ivory Coast - Côte d'Ivoire |
Subjects: | savings household income rural households Economics and Trade |
External link: | https://jae.oxfordjournals.org/content/1/1/1.full.pdf |
Abstract: | This paper is concerned with the extent to which farmers and other households in Côte d'Ivoire save and dissave in order to make their consumption smoother than their incomes. The author tests a strict form of intertemporal smoothing, that consumption follows the permanent income hypothesis, by which consumption is equal to the annuity value of the sum of assets and the present discounted value of current and expected future labour income. Data are derived from the Côte d'Ivoire Living Standards Survey which was carried out in 1985, 1986, and 1987. The restrictions implied by the permanent income theory are not supported by the data. However, the author consistently found that saving predicts falls in income in the cross-section data, so that farmers who are saving in one year are those who are most likely to have a fall in income in the next. Although the interpretation of the findings is complicated by econometric and data problems, they provide further support for the notion that farmers plan ahead, even if they do not do so according to the strict permanent income calculus for consumption. Bibliogr., sum. |