Working Paper: NBER ID: w6930
Authors: Martin Feldstein
Abstract: Increasing the rate of saving is an important priority for many emerging market countries. This paper focuses on Mexico and discusses a variety of policies through which the government of Mexico could stimulate a higher rate of saving. These ideas are building blocks rather than an overall plan. Some are mutually exclusive but most are options that could be combined to achieve a higher rate of saving. Although the emphasis is on policy options that can be helpful in raising saving, the paper also discusses proposals that would be likely to reduce the rate of saving. The primary focus of the paper is on tax reforms, but there is also a discussion of financial regulation, government debt management, and the new system of retirement saving accounts.
Keywords: private saving; public policy; Mexico; economic growth
JEL Codes: E21; E62
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Domestic saving (D14) | Investment (G31) |
| Investment (G31) | Economic growth (O49) |
| Domestic saving (D14) | Economic growth (O49) |
| Policies (D78) | Domestic saving (D14) |
| Domestic saving (D14) | Vulnerability to international capital shifts (F32) |