We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

account, driven by an initial, sharp decline in investment and fueled by medium term deleveraging, more so in advanced …

Domestic savings and investment are positively correlated across countries and through time, as Feldstein-Horioka (FH … relationship is causal: an exogenous rise in savings increases investment. This result holds in the full sample of countries and … endogeneity bias. The core of our identification strategy relies on the idea that population age structure influences savings, but …

The previous literature points to a high correlation between domestic rates of investment and savings among OECD … investment on the rate of domestic savings is statistically insignificant most of the time and generally smaller than 0.3 for any …

This paper calculates the levels of optimal national saving, investment, and the current account balance for five Asian …

Italy and provinces in Canada. Analyzing saving-investment correlations, and developing as well as fitting to the data a …

financial liberalization on domestic investment and savings, the current account balance and the real exchange rate, both when …