Title: Educational status, the social demonstration effect and inclination to save: a cross-sectional model of Pakistan
Authors: Syed Toqueer Akhtar; Muhammad Qasim Asad
Addresses: Lahore School of Economics, Intersection Main Boulevard Phase VI DHA and Burki Road, Lahore, Pakistan ' Lahore School of Economics, Intersection Main Boulevard Phase VI DHA and Burki Road, Lahore, Pakistan
Abstract: The paper looks at reasons for low savings in Pakistan, in connection with the interplay between the status of education and the social demonstration effect. It tries to account for the socio economic class structures prevalent in the Pakistani society and its role in determining the current savings level. Through survey research it looks at different factors that affect the saving rate. Keeping in view cross-sectional basis and apprehension of hetroskedasticity the weighted least square has been used for estimates. Among different segments of the income groups it looks at the effects of factors as income, education, dependents and occupation on savings. The paper finds a statistically significant relation of interplay of education and the social demonstration effect upon savings showing a tendency of low savings with higher levels of education. This paper highlights and provides key insight into the identification crisis the educated class faces.
Keywords: consumerism; low savings; social demonstration effect; education; Pakistan; educational status; inclination to save; cross-sectional models; weighted least squares; income; dependents; occupation.
International Journal of Economic Policy in Emerging Economies, 2016 Vol.9 No.3, pp.248 - 271
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 13 Sep 2016 *