Reinhart, Carmen and Ogaki, Masao and Ostry, Jonathan (1996): Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison. Published in: IMF Staff Papers , Vol. 43, No. 1 (March 1996): pp. 38-71.
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The relationship between real interest rates, saving, and gre is a cen tral issue in development economics. Using iflaCrOecOnOFflic data for c cross-section of countries, we estimate a model in %i’hlc/I 1/ic intertemporal elasticity of subsutution varies with the level of wealth. The estimated pa ranieters are used to calculate, in the context of a simple endogenous g rowt/i model, the responsiveness of saving to real interest rate c/ian ges for countries at differing stages of developmnent. The hypothesis f/mat the saving rate, and its sensitivity to time interest rate, are a risinq function of income finds strong empirical support.
|Item Type:||MPRA Paper|
|Original Title:||Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison|
|Keywords:||low income, subsistence consumption, saving, real interest rates|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
F - International Economics > F3 - International Finance
F - International Economics > F1 - Trade
|Depositing User:||Carmen Reinhart|
|Date Deposited:||03. Feb 2008 17:24|
|Last Modified:||11. Feb 2013 21:32|