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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.88/2016.2.1/220.127.116.11
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?
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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.88/2016.2.1/18.104.22.168
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.