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

Carmen Reinhart, Masao Ogaki and Jonathan Ostry

MPRA Paper from University Library of Munich, Germany

Abstract: The relationship between real interest rates, saving, and gre is a cen tral issue in development economics. Using iflaCrOecOnOFflic data for c cross-section of countries, we estimate a model in %i’hlc/I 1/ic intertemporal elasticity of subsutution varies with the level of wealth. The estimated pa ranieters are used to calculate, in the context of a simple endogenous g rowt/i model, the responsiveness of saving to real interest rate c/ian ges for countries at differing stages of developmnent. The hypothesis f/mat the saving rate, and its sensitivity to time interest rate, are a risinq function of income finds strong empirical support.

Keywords: low income; subsistence consumption; saving; real interest rates (search for similar items in EconPapers)
JEL-codes: E2 F1 F3 (search for similar items in EconPapers)
Date: 1996-03
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Citations: View citations in EconPapers (189)

Published in IMF Staff Papers 1.43(1996): pp. 38-71

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Related works:
Journal Article: 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)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:6978

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