International Evidenceon the Determinants of Private Saving
May 1, 1995
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Summary
A broad set of possible determinants of private saving behavior is examined, using data for a large sample of industrial and developing countries. Both time-series and cross-section estimates are obtained. Results suggest that there is a partial offset on private saving of changes in public saving and (for developing countries) in foreign saving, that demographics and growth are important determinants of private saving rates, and that interest rates and terms of trade have positive, but less robust, effects. Increases in per capita GDP seem to increase saving at low income levels (relative to the United States) but decrease it at higher ones.
Subject: Financial services, Fiscal policy, Fiscal stance, Income, International trade, National accounts, Private savings, Real interest rates, Terms of trade
Keywords: developing country, estimate, Fiscal stance, GDP, government saving, growth influences saving, Income, per capita income, Private savings, Real interest rates, saving, saving equation, saving rate, saving ratio, Terms of trade, world saving, WP
Pages:
33
Volume:
1995
DOI:
Issue:
051
Series:
Working Paper No. 1995/051
Stock No:
WPIEA0511995
ISBN:
9781451847055
ISSN:
1018-5941
