Gone with the Wind: Demographic Transitions and Domestic Saving

Eduardo Cavallo, Gabriel Sanchez (gabrielsan@iadb.org) and Patricio Valenzuela
Authors registered in the RePEc Author Service: Roberto Steiner and Adolfo Barajas

No 7579, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This study explores the relationship between demographic factors and saving rates using a panel dataset covering 110 countries between 1963 and 2012. In line with predictions from theory, this paper finds that lower dependency rates and greater longevity increase domestic saving rates. However, these effects are statistically robust only in Asia. In particular, Latin America, which is a region that has undergone a remarkably similar demographic transition, did not experience the same boost in saving rates as Asia. The paper highlights that the potential dividends arising from a favorable demographic transition are not automatically accrued. This is a sobering message at a time when the demographic tide is shifting in the world.

Keywords: Life Expectancy; Demographic Transition; Domestic savings; Pensions Systems (search for similar items in EconPapers)
JEL-codes: E21 J10 O16 (search for similar items in EconPapers)
Date: 2016-04
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Gone with the wind: Demographic transitions and domestic saving (2018)
Working Paper: Gone with the Wind: Demographic Transition and Domestic Saving (2016)
Working Paper: Gone with the wind: demographic transitions and domestic saving (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:7579

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