Open AccessAn outlier analysis on the trend of Indonesian propensity to save
Author(s) -
Edi Cahyono,
Lilis Laome,
Muh Rasywan Syarif,
La Ode Saidi,
Makkulau,
Swasono Raharjo
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1899/1/012115
Subject(s) - indonesian , outlier , economics , econometrics , production (economics) , marginal propensity to consume , function (biology) , capital (architecture) , investment (military) , macroeconomics , mathematics , statistics , multiplier (economics) , geography , philosophy , linguistics , archaeology , evolutionary biology , biology , politics , political science , law
Economic cycle is in the interest of researchers as well as governments. Kaldor model of economic cycle is among the existing models. This model is a system consists of two difference equations for discrete model, and two differential equations for continuous model. Two functions of time playing role to the model are capital and production. Saving and investment as functions of capital and production also appear in the model. Often, saving is assumed as a linear function where it is a multiplication of production and a parameter the so-called propensity to save. Hence, it is assumed to be constant. In this paper, Indonesian propensity to save was analyzed. The production is the gross domestic product (GDP). The data of GDP and saving were collected from World Bank. Outlier detection was applied to anlyze the data. Neglecting the outlier, the propensity to save was obtained in the form of logarithmic function. The finding is inline with an economic assumption, and it will be important for studying the Indonesian economy.