the welfare loss of capital income taxation relative to the alternatives of taxing consumption and labor income.The second … technology of private investment. Government policies that discourage saving might make the Schumpeterian vision of a shift from … sharp decline in the net national saving rate-from over 8% of GDP in the U.S. in the 1970s to only 4.5% in the 1980s & from …

consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private … consumption. A second alternative prescription was to reduce the private saving rate. Early Keynesians like Seymour Harris saw the …Three ways of averting "excess saving" have been emphasized in both theory and practice. The thrust of the Keynesian …

We propose an empirical implementation of the consumption-investment problem using the martingale representation … simplifies the investor's task of specifying the investment opportunity set and inherits the computational convenience of the … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using …

who save but do not participate in the stock market will increase their consumption, thereby reducing saving and capital …

, reducing labor productivity, real wages, and consumption … past several decades. It suggests that the decline in interest rates is largely explicable from trends in saving, growth …

, investment in capital goods and a non-traded good. Such an environment is rich enough to explain several phenomena that are … inexplicable in more barren models. We suggest an explanation of why saving and investment may be correlated even with no … restrictions on trade in assets. We explain why a high saving country may nonetheless borrow from abroad to finance investment. We …

developing countries, and higher after 1973 than before. Our interpretation of the saving-investment evidence is that the …The finding of Feldstein and Horioka (1980) that countriesf investment rates are highly correlated with their national … saving rates has by now been confirmed by many subsequent studies, even though their inference that international capital …