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Saving and Growth: Another Look at the Cohort Evidence

Angus Deaton () and Christina Paxson

Working Papers from Princeton, Woodrow Wilson School - Development Studies

Abstract: The main contribution of the paper is an attempt to address the selection and growth issues by working, not with cohorts of households, but with cohorts of individuals. The gain from doing so is that we dispose completely of selection associated with household formation, which compro-mises our estimates of the effects of growth on saving, leaving only selection through births, deaths, and migration, which does not. The cost is that we do not have data on individual con-sumption, and it is difficult to allocate income to individuals due to the prevalence of family enterprises, so that the standard methodology can no longer be applied.

Keywords: ECONOMIC GROWTH; SAVINGS (search for similar items in EconPapers)
JEL-codes: E20 E21 O40 O47 (search for similar items in EconPapers)
Date: 1998
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