Why do some countries save more than others?
AbstractSome countries have the resources and capacity to save more than the other countries. This paper analyses the determinants of annual saving. The analysis uses the optimal saving function which is derived from the household inter-temporal utility maximisation. The predictions from the comparative statics are compared with micro survey data in Japan and the US. In addition, the preference of inter-temporal consumptions is estimated. These comparisons and estimations suggest that higher annual saving could be explained by higher income, lower interest rates, shorter saving spans, longer retirement spans, and higher preference for retirement-span consumption.
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Bibliographic InfoPaper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-142.
Date of creation: Feb 2004
Date of revision:
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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- Horioka, Charles Yuji, 1990. "Why is Japan's household saving rate so high? A literature survey," Journal of the Japanese and International Economies, Elsevier, Elsevier, vol. 4(1), pages 49-92, March.
- Horioka, C.Y. & Watanabe, W., 1996.
"Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan,"
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University
0412, Institute of Social and Economic Research, Osaka University.
- Horioka, Charles Yuji & Watanabe, Wako, 1997. "Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(442), pages 537-52, May.
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