Estimation of the Family Saving Function in the Libyan Economy "An Applied Study on the Area of Abuqarin"

Abstract

This study aims to examine family saving in the Abuqarin area, estimate the family saving function for the year 2025, and measure the marginal propensity to save. To achieve its objectives, the study adopted a descriptive analytical approach, beginning with a review of the theoretical framework related to saving and consumption behavior in Keynesian theory, alongside a quantitative econometric approach to estimate the saving function in the Abuqarin area.

The results of the descriptive statistical analysis showed that the average family income of the sample was (1971.160) dinars, the average family saving was (167.908) dinars, and the average family consumption was (1803.252) dinars.

Among the most prominent econometric findings of the study was a positive relationship between income and saving. The estimated function indicated that autonomous saving (independent of income) amounted to (-138.565) dinars, and the marginal propensity to save reached 0.15, indicating that 15% of any increase in income is directed towards saving, while the remaining percentage is consumed. The value of the coefficient of determination (R²) was (88%), demonstrating that (88%) of the changes in saving can be explained by changes in income, while the remaining (12%) are attributable to the influence of other factors not included in the current study model. This implies that income is one of the most important factors affecting individuals' local savings. The correlation coefficient between consumption and income reached (0.94), indicating a strong positive relationship between the two variables (income and saving).