Working Paper: CEPR ID: DP1368
Authors: Paul R. Masson; Tamim Bayoumi; Hossein Samiei
Abstract: A broad set of possible determinants of private saving behaviour 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.
Keywords: saving; international comparisons
JEL Codes: C33; E21; H30; J11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Government fiscal position (H69) | Private saving (D14) |
| Demographic factors (J11) | Private saving (D14) |
| GDP growth (O49) | Private saving (D14) |
| Per capita income (D31) | Private saving (D14) |
| Real interest rates (E43) | Private saving (D14) |
| Terms of trade (F14) | Private saving (D14) |