determine savings, investment and growth. Investment is assumed to involve intermediation or other costs which may, in each … period, result in either of two stable equilibria for the savings rate. At the “good” equilibrium, savings and growth are … individual’s belief about the savings behavior of other agents in the economy. The model implies that fiscal policy or public …

This paper assesses empirically the role of public policies in stimulating private savings and investment in sub … effective in stimulating private savings and investment include those that keep the rate of inflation low, reduce macroeconomic … government savings are only partially offset by increases in private savings …