Income Elasticity of Time Deposit in the Context of Bangladesh

Arup Kumar Sinha, Muntasir Chaudhury, A. H. M. R. Imon

Abstract


<!-- /* Font Definitions */ @font-face {font-family:??; panose-1:2 1 6 0 3 1 1 1 1 1; mso-font-alt:SimSun; mso-font-charset:134; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 135135232 16 0 262145 0;} @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} @font-face {font-family:"\@??"; panose-1:2 1 6 0 3 1 1 1 1 1; mso-font-charset:134; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 135135232 16 0 262145 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman","serif"; mso-fareast-font-family:??; mso-fareast-language:EN-US;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt; mso-ascii-font-family:"Times New Roman"; mso-fareast-font-family:??; mso-hansi-font-family:"Times New Roman"; mso-font-kerning:0pt;} /* Page Definitions */ @page {mso-page-border-surround-header:no; mso-page-border-surround-footer:no;} @page Section1 {size:612.0pt 792.0pt; margin:72.0pt 90.0pt 72.0pt 90.0pt; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> In the start of this paper we investigated the roles played by components real per capita income and deposit rate in the determination of time deposit and subsequently we tried to show that time deposit is income elastic. Hausman Specification Test is used to check for simultaneity in the endogenous variables. VIF is used to see the presence of multicollinearity and stepwise regression is used to determine the model to estimate the time deposit efficiently. 

Full Text: PDF DOI: 10.5539/ijbm.v3n12p133

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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