HOUSEHOLD SAVING, INCOME AND DEMOGRAPHIC INTERACTIONS

An important stylized fact of economic development and population\ngrowth states that the higher the population growth the lower is the savings.\nThe present study undertakes an analysis of this hypothesis at the micro level.\nA simultaneous equations model - where the number of children is considered\nendogenous - is formulated to examine the relationship between household\nsaving, income, and the number of children. The model is estimated utilizing\nthe data from the results of household budget surveys in Ankara and Izmir.\nThe results indicate that in these two urban settings in Turkey children exert\nno significant influence on saving.