BEHAVIORAL PROPENSITY TO SAVE: A STUDY FROM THE PERSPECTIVE OF COGNITIVE BIASES IN HOUSEHOLD SAVING DECISION-MAKING

This one-page working paper introduces and validates the Behavioral Propensity to Save (BPS), conceptualized as a second-order behavioral construct that integrates four key cognitive biases—Loss Aversion (AV), Hyperbolic Discounting (DH), Status Quo (SQ), and Social Contagion (CS)—together with the Socioeconomic Profile (PSE) to explain household saving behavior. The empirical framework is based on a sample of 231 participants obtained through non-probabilistic convenience sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap resamples, allowing robust estimation without assuming multivariate normality. The model demonstrated convergent and discriminant validity (HTMT < .85) and achieved approximate model fit (SRMR < .14). Results show that the PCA construct explains over 70% of the variance in saving behavior (R²_men = 0.7083; R²_women = 0.7352). The structural model confirms inhibiting effects of SQ and AV on saving, along with a facilitating effect of CS—particularly among women. Partial invariance was established through the MICOM procedure: configural invariance was stable; compositional invariance was confirmed for PSE, SQ, CS, and AV, though not fully achieved for PCA and DH; and distributional equality was supported for means and variances, permitting multigroup comparisons with interpretative caution for PCA and DH. The PCA×PSE interaction revealed distinct behavioral profiles and plausible transitions across economic cycles, highlighting the construct’s usefulness for segmentation, behavioral diagnosis, and nudge design. Overall, the Behavioral Propensity to Save (PCA) provides an integrative behavioral-economics framework demonstrating that household saving is a situated, contextually bounded, and socially mediated behavior, where economic capacity alone is insufficient unless accompanied by the underlying cognitive architecture. Keywords: Behavioral Saving Propensity, behavioral economics, cognitive biases, saving behavior, PLS-SEM, socioeconomic profile, MICOM.