Household Saving in Developing Countries - Inequality, Demographics and All that: How Different are Latin America and South East Asia?

63 Pages Posted: 21 Apr 2011

See all articles by Miguel Székely

Miguel Székely

Center for Education and Social Studies

Orazio Attanasio

University College London - Department of Economics; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: July 2000

Abstract

East Asia and Latin America have diverged in several dimensions in the past three decades. This paper compares household saving behavior in two countries in each region (Mexico, Peru, Thailand and Taiwan). We make four contributions. First, we provide the first comparisons of savings in these two regions at the micro level using synthetic cohort techniques. Second, rather than focusing only on total household saving, as is common in the literature, we disaggregate the population into education groups to determine whether there are differences in saving behavior along the distribution of income. Third, we construct forecasts of future aggregate household saving rates, based on demographic projections. Fourth, we provide evidence that allows for testing the relevance of the life cycle model for explaining the differences in saving behavior.

Suggested Citation

Székely, Miguel and Attanasio, Orazio, Household Saving in Developing Countries - Inequality, Demographics and All that: How Different are Latin America and South East Asia? (July 2000). IDB Working Paper No. 358, Available at SSRN: https://ssrn.com/abstract=1817226 or http://dx.doi.org/10.2139/ssrn.1817226

Miguel Székely (Contact Author)

Center for Education and Social Studies ( email )

Mexico City
Mexico

Orazio Attanasio

University College London - Department of Economics ( email )

Gower Street
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United Kingdom
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Institute for Fiscal Studies (IFS)

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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