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The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a country's saving rate exhibits a rising or non-monotonic pattern. In important...
Persistent link: https://www.econbiz.de/10009756310
Latin American countries have long exhibited low levels of saving rates when compared to other countries in relatively similar stages of economic development (e.g., Asian economies). Motivated by this fact, this paper examines the time path of the saving rates between 1970 and 2010 in three...
Persistent link: https://www.econbiz.de/10011784490
We use household-level data from the Household Budgetary Survey to study the saving patterns of Maltese households. We … probability of saving is actually highest among households with low education. We interpret these findings through the … sheds further light on the saving intensity of households based on their characteristics. These findings can inform both …
Persistent link: https://www.econbiz.de/10012485344
intratemporal nonseparability in households’ preferences. I find evidence in favor of intratemporal dependence between total … utility services. My findings also indicate households are more willing to substitute housing and nondurable consumption …
Persistent link: https://www.econbiz.de/10012142395
Private consumption demand falls in response to increased unemployment risk during a recession, as households increase … that having many ’hand-to-mouth’ households, who do not respond to changes in income risk, significantly dampens the demand …
Persistent link: https://www.econbiz.de/10012142400
The large spread between equity returns and risk free rates observed in most stock markets (the "equity premium puzzle") has been subject of intense debates. Two main families of models claim to solve this puzzle: habit formation models and loss aversion models. The goal of this paper is to...
Persistent link: https://www.econbiz.de/10005858060
one form or the other, these distortions have implied significant transfers from households to firms. If China is to …
Persistent link: https://www.econbiz.de/10003758478
We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by durables whereas unsecured debt can be discharged in bankruptcy procedures. We show that the model matches the main quantitative characteristics of observed wealth and debt...
Persistent link: https://www.econbiz.de/10003850601
This paper investigates the relevance of business saving for private saving and investment around the world by constructing and exploiting a broad international, unbalanced panel of 64 countries over 1990-2012. The paper shows that businesses are the main contributors to private and national...
Persistent link: https://www.econbiz.de/10011286678
The informal sector is an extensive phenomenon in developing countries. While some of its implications have drawn considerable attention in the literature, one relatively unexplored aspect has to do with the saving patterns of workers and firms and how these might influence aggregate savings and...
Persistent link: https://www.econbiz.de/10011290050