This paper discusses the determinants of and the barriers to formal saving both from the theoretical point of view and … cognitive biases, among other factors, might be equally important in explaining low or non-existent levels of saving. The paper …

In this paper, we build a heterogeneous agents-dynamic general equilibrium model wherein saving constraints interact … with credit constraints. Saving constraints in the form of fixed costs to use the financial system lead households to seek … informal saving instruments (cash) and result in lower aggregate saving. Credit constraints induce misallocation of capital …