Munich Personal RePEc Archive

What are the causes of the growing trend of excess savings of the corporate sector in developed countries? An empirical analysis of three hypotheses.

Pérez Artica, Rodrigo and Brufman, Leandro and Martinez, Lisana (2013): What are the causes of the growing trend of excess savings of the corporate sector in developed countries? An empirical analysis of three hypotheses.

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Abstract

We analyze a sample of manufacturing firms from Germany, France, Italy, Japan, and UK during the period 1997-2011, and find an increasing trend of excess savings (defined as the difference between gross saving and capital formation), and a gradual decline of gross capital formation. This trend is accompanied by a steady deleveraging process and a decrease in the share of operating assets in total assets. This process is more acute among the more credit constrained, the more volatile, and the less dynamic firms.

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