The impact of life cycle theory on household savings in the National Capital Region of the Philippines

Added Title

Impact of life cycle theory on financial management and household savings in the cities of Makati, Mandaluyong and Quezon (2006);"Impact of LCt on household savings"

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Robert Dan Roces

Defense Panel Chair

Edralin C. Lim

Defense Panel Member

Joseph James Lago
Neriza M. Delfino

Abstract/Summary

The theory formulated by Modigliani and Brumberg back in 1954 namely the life cycle theory of savings and consumption observed a 'hump-shape' throughout the lifetime of a person. This has been the major knowledge until recent studies have shown that it doesn't follow the hump-shape pattern that the theory suggests. Some observe it is non-existent while some even see a double hump in some studies. This theory is frequently related to household savings and mainly for macro-level studies. The proponents used it to study the National Capital Region of the Philippines to look at the importance of understanding savings under the life cycle model in connection to the savings patterns of households at a micro level. The proponents follow one of the models modified by Movshuk (2009) which is a semi-parametric smoothing cohort model and use the data of the Family income and expenditure survey (FIES) from 1997 to 2006 conducted every three years. Using pseudo-panel data, the proponents observed household heads with the same age range to trace the common traits within the groups. The results of the study contradict the life cycle of the households in the NCR as compared to other studies, such as cultural differences, motivation for saving, and purpose for saving.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17177

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

64 leaves : illustrations

Keywords

Finance, Personal--Philippines; Saving and investment--Philippines; Savings accounts--Philippines

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