Dominique Hachette () (Instituto de Economía. Pontificia Universidad Católica de Chile.)
Abstract
Private saving has experimented a very significant increase in the last twenty years in Chile. From negative figures in mid-seventies, it has reached levels over 16% of PNB in mid-nineties. Several hypothesis have been suggested to explain this behavior, the most novel of which is related to the development of capitalization funds based social security. We show in this article that (i) this hypothesis is only middly supported by facts given the high rate of substitution between forced and voluntary savings, (ii) growth, financial deepening and transitory income were important to stimulate private voluntary saving, (iii) the gradual lifting of liquidity constraints and last, but not least, opportunities of investment or the overall institutional framework were also a significant if not determinant incitation to private saving. on the other hand, a high rate of substitution between public saving and government expenditures, on one side, and private saving, on another, cannot be discarded. Conclusions stress then the relative importance of general measures to ensure a favorable environment for investment rather than specific ones directed to some forms of savings if private voluntary saving should keep growing.
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Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.
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