Chen, Kaiji; Imrohoroglu, Ayse; Imrohoroglu, Selahattin - Society for Economic Dynamics - SED - 2006
The U.S. national saving rate has been declining since the 1960s while the share of consumption in output has been increasing. We explore if a standard growth model can explain the secular movements observed in this time period. Our quantitative findings indicate that the standard neoclassical...