Modeling Savings Behavior of Russians in Terms of Instability: Empirical Model

Abstract

A new approach to the modeling of savings behavior is proposed by the author. The basic indicators to design the models are those indicators that fix not only savings but settings and predictions concerning savings activities. The author described five models. The impact of financial crisis on the existing models is also taken into account. Thus, the author analyses savings behavior of Russians in the beginning of the crisis (2008) and in the end (2010). The findings of the study suggest that the structure of the models used by domestic households is rather stable. Most of these models do not require savings activity; however there are groups of potential savers that could serve as an important source of investment into Russian economy.