Precautionary Saving from Different Sources of Income

Download or read book Precautionary Saving from Different Sources of Income written by Richard H. Adams and published by World Bank Publications. This book was released on 2002 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.