Saving behavior in low- and middle-income developing countries a comparison

Masao Ogaki, Jonathan D. Ostry, Carmen M. Reinhart

Research output: Contribution to journalArticle

123 Citations (Scopus)

Abstract

The relationship behveen 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 risins function of income finds strong empirical support.

Original languageEnglish
Pages (from-to)38-71
Number of pages34
JournalIMF Staff Papers
Volume43
Issue number1
Publication statusPublished - 1996
Externally publishedYes

Fingerprint

Developing countries
Saving behavior
Income
Stages of development
Wealth
Responsiveness
Intertemporal elasticity of substitution
Cross section
Saving rate
Interest rates
Development economics
Macroeconomics
Endogenous growth model

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Saving behavior in low- and middle-income developing countries a comparison. / Ogaki, Masao; Ostry, Jonathan D.; Reinhart, Carmen M.

In: IMF Staff Papers, Vol. 43, No. 1, 1996, p. 38-71.

Research output: Contribution to journalArticle

Ogaki, Masao ; Ostry, Jonathan D. ; Reinhart, Carmen M. / Saving behavior in low- and middle-income developing countries a comparison. In: IMF Staff Papers. 1996 ; Vol. 43, No. 1. pp. 38-71.
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