EconPapers    
Economics at your fingertips  
 

The savings trap and economic take-off

Carlos Asilis

Oxford Economic Papers, 2002, vol. 54, issue 1, 20-43

Abstract: We develop a model of economic development in which culture and technology interact to devermine savings, investment, and growth. Investment is assumed to involve intermediation or other costs that may, in any period, result in either of two equilibria for the savings rate. At the good equilibrium, aggregate savings, the savings rate, and growth are all higher than at the bad equilibrium. Whether the country falls into this savings trap depends on each individual's belief about the savings behavior of others in the economy. Goverment policies that coordinate savings and facilitate investment can influence whether the country escapes the trap. Copyright 2002, Oxford University Press.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:54:y:2002:i:1:p:20-43

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2025-03-19
Handle: RePEc:oup:oxecpp:v:54:y:2002:i:1:p:20-43