Household savings and investment

Abstract

The paper deals with household savings and investment functions. The institutional features of the household economy in the world economy are presented in terms of their place and role in the national economies. The specific household investment activities are analyzed in the context of strategic financial choices. Household activities imply a choice between various behavioral imperatives. The search for appropriate areas to invest temporarily free cash in order to meet household needs influences this choice. The significance of a system of contributing institutions is shown to facilitate these processes. As the authors argue, the economy should encourage the system of institutions, favorable for stimulating the household investment activities. It appears crucial to stimulate household investments in various economic assets. This study presents a comparative analysis of the Russian, Kazakh, Belarusian, Armenian, Kyrgyz, and American household investment activities. Worldwide experience shows that similar tendencies occur, which characterize households investment activities in different countries. The authors identified the differences in household living standards, incomes and investments among the countries. As the research findings suggest, low-income households prefer risk-free investments. Recommendations are made on improving institutional instruments to stimulate households to choose a predominant financial strategy of saving.

Digitalization of the Labor Market in the Fourth Industrial Revolution

“…Below is a small analysis of the literature in this area for 2019–2020 from the peer-reviewed journal Terra Economicus. In the article, Nikolaychuk and Nureev as modern trends (among others), the low level of financial literacy and the growth of household debt is noted, which is a brake on the development of the Russian economy [ 11 ]. Shmakov, analyzing the features of ritual behavior, notes the fundamental changes in the psychology of society, initiated by the processes of digitalization [ 13 ].…”

Disproportionality In Human Welfare Indicators As An Economic Pseudo-Security Driver

“…At the same time, it is necessary to note that approaches to identifying the satisfaction of the population's needs in material and non-material benefits are multidirectional. Thus, the authors of some works focus on tracking the value of household consumption, that is, the choice is made in favor of considering consumer spending rather than cash income (Nivorozhkina, 2016), other authors emphasize the investment and saving behavior of an individual (Nikolaychuk & Nureev, 2020), and others -on specific parameters of the quality of life, for example, availability of information and telecommunication technologies and their impact on human life (Litvintseva et al, 2019), rationality of attitudes towards health (Rozmainsky & Osipova, 2020).…”