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Household Saving in Chile: Microeconomic Evidence

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  • Andrea Butelmann
  • Francisco Gallego

Abstract

Saving behavior at a micro level in Chile has not been analyzed in recent decades. Based on 1988 and 1996-7 Chilean microeconomic evidence (Household Budget Survey), we present an analysis of household’s saving behavior. The analysis is extended to include broader definitions of saving such as investment in human capital and durable goods purchases. We have learned that both income and more permanent characteristics such as education are important determinants of household saving rate. Furthermore, we find an income/expenditure parallelism and positive saving rates for the elderly. At a first stage of analysis, these facts contradict the predictions of the life cycle hypothesis, but some corrections (using demographic characteristics and a different treatment of pensions) change these preliminary conclusions. The differences in the credit constrains by groups are explored in order to study its likely effects on consumption smoothing. Finally, elderly saving are analyzed focusing on their contradictory effect in macro and micro studies

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 63.

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Date of creation: Feb 2000
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Handle: RePEc:chb:bcchwp:63

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Cited by:
  1. Craig P. Aubuchon & Juan Carlos Conesa & Carlos Garriga, 2011. "A primer on social security systems and reforms," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 19-35.
  2. Andrea Butelmann & Francisco Gallego, 2000. "Household Saving in Chile: Microeconomic Evidence," Working Papers Central Bank of Chile 63, Central Bank of Chile.
  3. Juan Rojas & Carlos Urrutia, 2004. "Social Security Reform with Uninsurable Income Risk and Endogenous Borrowing Constraints," Macroeconomics 0410010, EconWPA.
  4. Juan A. Rojas & Carlos Urrutia, 2008. "Social Security with Uninsurable Income Risk and Endogenous Borrowing Constraints," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 83-103, January.
  5. World Bank, 2011. "Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report," World Bank Other Operational Studies 12264, The World Bank.
  6. Gan-Ochir Doojav & Borkhuu Gotovsuren & Tsenddorj Dorjpurev, 2012. "Financial Contagion and Volatile Capital Flows," Occasional Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number occ56, янваÑ.

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