permanent component of the terms of trade may lead to higher rates of private savings. Agénor and Aizenman examine the extent to … which permanent terms-of-trade shocks have an asymmetric effect on private savings. Using a simple three-period model, they … long trough rather than a sharp peak), savings rates will respond asymmetrically to favorable movements in the permanent …

This paper examines the extent to which permanent terms-of-trade shocks have an asymmetric effect on private savings … in bad states of nature, savings rates will respond asymmetrically to favorable movements in the permanent component of … standard determinants of private savings. The results, based on panel data for non-oil commodity exporters of sub …