World Saving

56 Pages Posted: 11 Dec 2014

See all articles by Francesco Grigoli

Francesco Grigoli

International Monetary Fund (IMF)

Alexander Herman

International Monetary Fund (IMF)

Klaus Schmidt-Hebbel

Pontifical Catholic University of Chile

Date Written: November 2014

Abstract

This paper presents new evidence on the behavior of saving in the world, by extending previous empirical research in five dimensions. First, it is based on a very large and recent database, covering 165 countries from 1981 to 2012. Second, it conducts a robustness analysis across different estimation techniques. Third, the empirical search is expanded by including potential saving determinants identified by theory but not previously considered in the empirical literature. Fourth, the paper explores differences in saving behavior nesting the 2008-10 crisis period and four different country groups. Finally, it also searches for commonalities and differences in behavior across national, private, household, and corporate saving rates. The results confirm in part existing research, shed light on some ambiguous or contradictory findings, and highlight the role of neglected determinants. Compared to the literature, we find a larger number of significant determinants of saving rates, using different estimators, for different periods and country groups, and for different saving aggregates.

Keywords: Private savings, Consumption, Domestic savings, Cross country analysis, Econometric models, Regression analysis, corporate saving, Global Financial Crisis, household saving, national saving, income, future, trade, financial assets, pension, urbanization, interest, share, pension system, exchange rate, interest rates, rate of return, real assets, fiscal policy, tax, sovereign debt, borrowers, capital flow, consumer durables, demographic, broad money, future growth, pension assets, developing countries, consumer price index, advanced economies, collateral, political risk, taxes, financial risk, foreign assets, prices, bank credit, deposit rates, human capital, financial markets, pensions, publ

JEL Classification: C23, E21, H30

Suggested Citation

Grigoli, Francesco and Herman, Alexander and Schmidt-Hebbel, Klaus, World Saving (November 2014). IMF Working Paper No. 14/204. Available at SSRN: https://ssrn.com/abstract=2536899

Francesco Grigoli (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Alexander Herman

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Klaus Schmidt-Hebbel

Pontifical Catholic University of Chile ( email )

Av. Vicuna Mackenna 4860
Santiago
Chile

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