This paper examines the extent to which conclusions of cross-country studies of private savings are robust to allowing … for the possible heterogeneity of savings behavior across countries and the inclusion of dynamics. It shows that … neglecting heterogeneity and dynamics can lead to misleading inferences about the key determinants of savings behavior. The …

In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …

lower consumption and GDP growth. Consistent with a model of precautionary savings in the face of uncertainty, we find for a … panel of advanced economies that greater labor income uncertainty is significantly associated with higher household savings … precautionary savings motive …

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

Feldstein and Horioka (1980) argued that the correlation of saving and investment in a cross-section of countries may … investment should be cointegrated over time. Simulations show that the cross-section regressions used in the literature will …

reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

This paper analyzes reasons for the high post-war correlations of saving and investment, both across countries and over …

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 …

of investment, civil conflict, economic inefficiencies, state intervention in the economy, and regulatory restrictions …