Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions

Author/Editor:

International Monetary Fund

Publication Date:

September 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the extent to which conclusions of cross-country studies of private savings are robust to allowing for the possible heterogeneity of savings behavior across countries and the inclusion of dynamics. It shows that neglecting heterogeneity and dynamics can lead to misleading inferences about the key determinants of savings behavior. The results indicate that among the many variables considered in the literature only the fiscal variables—the general government surplus as a proportion of GDP and the ratio of government consumption to GDP—are important determinants of private savings rates in the industrial countries in the post-World War II period.

Series:

Working Paper No. 99/128

English

Publication Date:

September 1, 1999

ISBN/ISSN:

9781451855036/1018-5941

Stock No:

WPIEA1281999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

37

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