HOUSEHOLD ECONOMIC PRUDENCE IN THAILAND

The countercyclical pattern of saving in Thailand the 1990s and 2000s raised questions about household behaviors country. Using constructed pseudo-panel data sets from Thai Household Socioeconomic Surveys (SESs) 1992 to 2011, this paper estimates intensity precautionary motive, measured by coefficient relative prudence households Thailand. By using a dynamic approach address concerns with regard individual heterogeneity causing bias estimation, estimated is around 2, which shows low motive among these compared other countries. Estimates based on disaggregation demographic characteristics show that as result government-assistance policy, older cohorts those who live rural areas lower prudence.