by a binding credit constraint, injecting a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium …

by a binding credit constraint, injecting a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium …

This paper studies the effects that borrowing constraints have on savings and growth and argues that, though they … increase savings, their effect on growth is ambiguous. Empirical evidence on the extent of borrowing constraints as well as … savings, investment, human capital accumulation and growth performance for industrialized countries is presented. A simple …

This study documents a hump-shaped empirical relationship between financial development and the aggregate savings rate …, the aggregate savings rate may rise initially with financial development because of greater investment by firms, but then … it declines with further financial development because of substantially reduced precautionary savings by households …

Capital outflows after financial integration can lead to simultaneous increases in the national savings rate and asset … constraint that creates a need for precautionary savings. Financial integration provides firms with access to foreign risk … capital outflows; and a wealth effect, whereby they grow richer in equilibrium and thus demand more domestic capital. Savings …