Aron, J. and J. Muellbauer, 2000. Personal and corporate saving in South Africa. World Bank Economic Review, 14(3): 509-544.
Brooks, C., 2008. Introductory econometrics for finance. 2nd Edn., UK: Cambridge University Press.
Chiroro, B., 2010. Savings should drive economic recovery and economic growth in South Africa. South Africa: South African Savings Institute and Old Mutual.
Cronjé, M. and A. Roux, 2010. Savings culture for the black middle class in South Africa. USB Leaders’ LAB, 4(2): 22-27.
Davidson, P., 2007. Setting the record straight on a history of Post Keynesian economics. Journal of Post Keynesian Economics, 26(2): 245-272.
Dimant, T., 2012. The economy, South Africa survey 2010/2011. Pretoria: SAIRR.
Engle, R.F. and B.S. Yoo, 1991. Forecasting and testing in cointegrated systems. Journal of Econometrics, 35: 143-159.
Gujarati, D., N., 1995. Basic econometrics. 3rd Edn., New York: McGraw-Hill International Editions.
Gujarati, D.N., 2004. Basic econometrics. 4th Edn., New York: McGraw-Hill International Editions.
Hess, P., 2010. Determinants of the adjusted net saving rate in developing economies. International Review of Applied Economics, 24(5): 591-608.
Hoosain, A., 2012. The relationship between consumer credit and consumption spending in South Africa. South Africa: Gordon Institute of Business Science, University of Pretoria.
Joo, S., 1998. Personal financial wellness and worker job productivity. Unpublished Doctoral Dissertation, Blacksburg: Virginia Polytechnic Institute and State University.
Kim, J., 2000. The effects of workplace financial education on personal finances and work outcomes. Unpublished PhD Thesis. Blacksburg: Virginia Polytechnic Institute and State University.
Le Roux, R., 2012. Savings wake-up call for South Africa (Mail & Guardian Newspaper Article) Dated (01 August 2012).
Lorgat, M., 2003. Enabling worker finances: The effects of rising costs of living and debt on worker finances. Durban: Working Paper. South African Sociological Association.
Marcus, G., 2012. Statement of the monetary policy committee. Available from https://www.resbank.co.za/Publications/Pages/Publications-Home.aspx.
Mnyande, M., 2010. The role of monetary policy in influencing savings behaviour in the South African economy. South Africa: SARB.
Mutezo, A., 2014. Household debt and consumption spending in South Africa: An ARDL-bounds testing approach. Banks and Bank Systems, 9(4): 73-81.
Mutyaba, F., 2013. Determinants of household savings and effects of household savings on the stock market in South Africa and China: A comparative study. Johannesburg: University of the Witwatersrand.
National Credit Regulator, 2012. Annual Report (2011/2012). South Africa: NCR.
Ojah, K. and T. Mokoalel, 2010. Possible effective financing models for entrepreneurship in South Africa: Guides from microfinance and venture capital finance. African Finance Journal, 12(1): 1-26.
Paramaiah, C. and O.M. Akway, 2008. Econometric analysis of personal consumption expenditure in Ethiopia. Andhra Pradesh. India: The ICFAI University Press.
Park, J.Y. and P.C.B. Phillips, 1988. Statistical inference in regressions with integrated processes: Part 1. Econometric Theory, 4(03): 468-497.
Phillips, C.B. and P. Perron, 1988. Testing for a unit root in time series regression. Biometrika, 75(2): 335-346.
Phillips, P.C.B. and B.E. Hansen, 1990. Statistical inference in instrumental variables regression with 1(l) processes. Review of Economic Studies, 57(1): 99-125.
Prinsloo, J.W., 1995. Private saving sector in South Africa. South African reserve bank’s quarterly bulletin September. Pretoria: SARB. pp: 1-35.
Prinsloo, J.W., 2000. The saving behaviour of the South African economy, Occasional Paper No.14. Pretoria: South African Reserve Bank.
Rajan, R. and L. Zingales, 2003. The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1): 5–50.
SARB, 2010. Annual Economic Report; Pretoria: South African Reserve Bank.
SARB, 2014. Quarterly bulletin, various issues. Pretoria: South African Reserve Bank, Pretoria.
South African Reserve Bank (SARB), 2002. Quarterly bulletin, various issues. Pretoria: South African Reserve Bank.
Todaro, M.P. and S.C. Smith, 2011. Economic development. 10th Edn., New York: Pearson Addison Wesley.
West, K.D., 1987. Asymptotic normality, when regressors have a unit root. Econometrica, 56: 1397-1417.
R Ncwadi , Kholiswa Malindini (2016). Examining Long Run Relationship between Household Debt and Household Savings in South Africa – An Error Correction Model and Granger Causality. Quarterly Journal of Econometrics Research, 2(1): 17-27. DOI: 10.18488/journal.88/2016.2.1/184.108.40.206
Savings is vital to maintain and expand an economy’s capital structure
and economic growth. Saving is an important component of economic growth
model in that investments are created from savings. Investment allows
an opportunity to improve technology and thereby increasing levels of
productivity. Increasing levels of productivity lead to increased real
wages. The end result of increasing real wage is improvement of the
welfare of the nation. Nevertheless, savings have been declining over
the years, placing the South African economic development agenda in
jeopardy. Since 1984, savings have deteriorated significantly, reaching a
mere 15.3 percent of GDP in 2009 (SARB, 2010). The decline in savings
at the beginning of the 1980s coincided with increased access to credit
by households. Alongside these developments net wealth of the households
increased relative to their disposable income (South African Reserve
Bank (SARB), 2002). Mutyaba (2013) states that savings declined
considerably during the last decade in South Africa. In 2006, for
example, savings turned negative. In contrast, during the same year the
debt increased to its highest level ever Mutyaba (2013). Clearly
voluntary savings are becoming even more unaffordable by a number of
households in South Africa, mainly amongst the low earners (Chiroro,
2010).This study uses Engle & Granger cointegration approach and
granger causality to examine the link between debt and savings in South
This paper makes a contribution towards the household savings discourse
in South Africa. The use of Engle and Granger cointegration approach to
examine the link between household savings and household debt in this
paper is one of the very few studies in this area in South Africa.
Acquisition of Personal Assets Through Loan Bank and Commercial Credit: What’s the Best Option?
Biehler, T.J., 2008. The mathematics of money. New York: McGraw-Hill/Irwin.
Blecksmith, R., 2009. Math 210 finite mathematics. Available from http://www.math.niu.edu/~richard/Math210/int2_ho.pdf.
García-Santillán, Moreno-García, Ortiz-Rivera, Lanza-Vilorio and Lira-Martínez, 2016. Acquisition of personal assets through a set of installments due versus deferred installments: What is the best option? Bulletin of Mathematics and Statistics Research, 4(1): 124-131
García-Santillán, A., 2014. Matemáticas financieras para la toma de decisión financial math for making decision. Electronic versión at Universidad de Málaga Registered at National Library of Spain Nº 2014/60144.
George Brown College, 2014. Formula sheet for financial mathematics. Available from https://www.georgebrown.ca/uploadedFiles/TLC/_documents/pdf.
Moreno-García, García-Santillán, Abascal-Sánchez, González-Zarco and Galindo-Martínez, 2015. A comparative financial modeling to evaluate a real state property with mortgage loan versus investment funds. Bulletin of Mathematics and Statistics Research, 3(4): 10-19
Sierra, B. and T. Froufe, 2006. Publicidad y conducta del consumidor advertising and behavioral consumer. Available from http://www.mercasa.es/files/multimedios/1309247397_DYC_2000_51_109_117.pdf.
Garcia-Santillan, Arturo , Ortigosa-Ortiz, Alexa Andrea , Hernandez-Perez, Sandra Luz , Mora-Montalvo, Noelia , Ramos-Hernandez, Jesica Josefina (2016). Acquisition of Personal Assets Through Loan Bank and Commercial Credit: What’s the Best Option?. Quarterly Journal of Econometrics Research, 2(1): 1-16. DOI: 10.18488/journal.88/2016.2.1/220.127.116.11
The aim of this paper is to determine the most viable and beneficial scenario for acquire an asset, specifically a car. For this purpose, the amortizations model was used, which is why the corresponding financial simulation in the amortization charts on both scenarios are presented. The results lead us to think that the financing option offered by the car company is the most suitable and beneficial for the client.
This study contributes in the existing literature about the amortization methods. Its contribution is to demonstrate the most viable option for acquire a car, within Mexican context.