## Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions

_IMF Working Papers, September 1, 1999_

## Source details

**Canonical URL:** [Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions](https://www.imf.org/en/publications/wp/issues/2016/12/30/neglected-heterogeneity-and-dynamics-in-cross-country-savings-regressions-3276)

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## Bibliographic details
- Published: September 1, 1999
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855036.001

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### Summary and key findings
- The paper examines robustness of cross-country studies of private savings to (a) allowing for possible heterogeneity of savings behavior across countries and (b) inclusion of dynamics.
- Neglecting heterogeneity and dynamics can lead to misleading inferences about the key determinants of savings behavior.
- Among the many variables considered in the literature, only the fiscal variables are identified as important determinants of private savings rates in the industrial countries in the post-World War II period:
  - the general government surplus as a proportion of GDP
  - the ratio of government consumption to GDP

### Subject matter and keywords
- Subject: Expenditure, Financial services, Government consumption, Income, National accounts, Private savings, Real interest rates
- Keywords: coefficient estimate, country regression, cross-country studies, dynamics, Government consumption, Income, long-run coefficient, MG estimate, mover accent, OECD, panel data, panel data models, Private savings, Real interest rates, Ricardian effect, Saving behavior, savings rate, slope coefficient, slope heterogeneity, wealth-GDP ratio, WP

### Publication and document specifics
- Publication title: Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions
- Publication series: IMF Working Papers
- Publication date: September 1, 1999
- Pages: 37
- Volume: 1999
- Issue: 128
- Series: Working Paper No. 1999/128
- DOI: https://doi.org/10.5089/9781451855036.001
- Stock No: WPIEA1281999
- ISBN: 9781451855036
- ISSN: 1018-5941

*International Monetary Fund. "Neglected Heterogeneity and Dynamics in Cross-Country Savings Regressions" (IMF Working Paper No. 1999/128).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/neglected-heterogeneity-and-dynamics-in-cross-country-savings-regressions-3276_