Household Participation in Formal and Informal Savings Mechanisms: Evidence from Pakistan

15 Pages Posted: 2 Jul 2003

See all articles by Seth B. Carpenter

Seth B. Carpenter

Federal Reserve Board - Department of Monetary Affairs

Robert T. Jensen

UCLA School of Public Affairs; National Bureau of Economic Research (NBER)

Abstract

Savings are an important determinant of both individual and national wellbeing. Typically, households employ a wide range of mechanisms for saving, including both formal and informal institutions. The choice of savings instrument has important micro- and macroeconomic implications. However, little is known empirically about the patterns of use of these instruments, or the factors affecting household decisions/abilities to use them. The authors apply household-level data from a nationally representative survey for Pakistan to explore these issues in detail. In particular, they focus on the choice between banks and bisi, an informal saving committee similar in nature to a rotating-savings-and-credit association.

Suggested Citation

Carpenter, Seth B. and Jensen, Robert T., Household Participation in Formal and Informal Savings Mechanisms: Evidence from Pakistan. Review of Development Economics, Vol. 6, pp. 314-328, 2002. Available at SSRN: https://ssrn.com/abstract=330785

Seth B. Carpenter (Contact Author)

Federal Reserve Board - Department of Monetary Affairs ( email )

20th and C Streets, NW
Mailstop 60
Washington, DC 20551
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202-452-2385 (Phone)
202-452-2301 (Fax)

Robert T. Jensen

UCLA School of Public Affairs ( email )

Box 951656
Los Angeles, CA 90095-1656
United States
310-825-9865 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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