THE PAKISTAN DEVELOPMENT REVIEW
Household Saving in Pakistan: Some Findings from Time-Series Data
The paper tests some household savings hypotheses with time-series data for Pakistan over the 1950-51 – 1976-77 period. The permanent income model is found to give a much better explanation of the year-to- year variations in household saving than does the simple current income model. Among other findings is a highly significant correlation between ch;lI1ges in the real rate of return on financial assets and household saving.