Saving Rates in Latin America: A Neoclassical Perspective

Andrés Fernández Martin, Ayse Imrohoroglu and Cesar Tamayo

IMF Economic Review, 2019, vol. 67, issue 4, No 3, 823 pages

Abstract: Abstract This paper examines the time path of saving rates between 1970 and 2010 in Chile, Colombia, and Mexico through the lens of the neoclassical growth model. The findings indicate that two factors, the growth rate of TFP and fiscal policy, are able to account for some of the major fluctuations in saving rates observed during this period. In particular, we find that the model accounts for the low saving rates in Chile compared to Colombia until the late 1980s and the reversal in the saving rates thereafter. Also, a combination of high TFP growth and tax reforms that substantially reduced capital taxation seems to be responsible for the impressive increase in Chile’s saving rate in mid-1980s.

JEL-codes: E21 O47 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41308-019-00093-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Saving Rates in Latin America: A Neoclassical Perspective (2019)
Working Paper: Saving Rates in Latin America: A Neoclassical Perspective (2019)
Working Paper: Saving Rates in Latin America: A Neoclassical Perspective (2019)
Working Paper: Saving Rates in Latin America: A Neoclassical Perspective (2018)
Working Paper: Saving Rates in Latin America: A Neoclassical Perspective (2017)
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:pal:imfecr:v:67:y:2019:i:4:d:10.1057_s41308-019-00093-1

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

DOI: 10.1057/s41308-019-00093-1

Access Statistics for this article

More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().