Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison

Masao Ogaki, Jonathan Ostry and Carmen Reinhart

IMF Staff Papers, 1996, vol. 43, issue 1, 38-71

Abstract: The relationship between real interest rates, saving, and growth is a central issue in development economics. Using macroeconomic data for a cross-section of countries, we estimate a model in which the intertemporal elasticity of substitution varies with the level of wealth. The estimated parameters are used to calculate, in the context of a simple endogenous growth model, the responsiveness of saving to real interest rate changes for countries at differing stages of development. The hypothesis that the saving rate, and its sensitivity to the interest rate, are a rising function of income finds strong empirical support.

JEL-codes: E21 F41 F43 O11 O16 O57 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (213)

Downloads: (external link)
http://www.jstor.org/stable/3867352?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison (1996)
Working Paper: Saving Behavior in Low and Middle-Income Developing Countries: A Comparison (1995)
Working Paper: Saving behavior in low- and middle-income developing countries (1995)
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:imfstp:v:43:y:1996:i:1:p:38-71

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

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().