Economics at your fingertips  

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

Masao Ogaki, Jonathan Ostry () and Carmen Reinhart ()

No 1995/003, IMF Working Papers from International Monetary Fund

Abstract: The impact of changes in real interest rates on saving and growth is a central issue in development economics. According to one familiar view, a financial liberalization program which increases real interest rates should encourage saving, thereby boosting investment and growth. While such liberalizations have indeed typically succeeded in raising real interest rates, their impact on private saving has been mixed. This paper uses macroeconomic data for a sample of countries with diverse income levels to estimate a model in which the intertemporal elasticity of substitution varies with the level of wealth. The estimated parameters are then 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.

Keywords: Real interest rates; Consumption; Income; Domestic savings; Private savings; WP,real rate of interest,rate of return,utility function (search for similar items in EconPapers)
Pages: 38
Date: 1995-01-01
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison (1996) Downloads
Working Paper: Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison (1996) Downloads
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:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Jim Beardow () and Hassan Zaidi ( this e-mail address is bad, please contact ).

Page updated 2021-01-20
Handle: RePEc:imf:imfwpa:1995/003