Secular Trends in U.S Saving and Consumption

Kaiji Chen, Ayse Imrohoroglu and Selahattin Imrohoroglu

No 494, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: National saving rate in the U.S. has been declining since the 1960s while the share of consumption in output has been increasing. We explore if a standard growth model can explain the secular trends observed in this time period. Our results indicate that the standard neoclassical growth model is able to generate saving rates and consumption that are remarkably similar to the data during 1960-2004. Our quantitative findings identify the growth rate of total factor productivity as the main factor generating the secular trends in the behavior of consumption and saving in the U.S

Keywords: Consumption; Saving (search for similar items in EconPapers)
JEL-codes: E2 (search for similar items in EconPapers)
Date: 2006-07-04
New Economics Papers: this item is included in nep-ets, nep-fmk and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:494

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