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Saving and Growth: Another Look at the Cohort Evidence

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  • Deaton, A.
  • Paxson, C.

Abstract

The main contribution of the paper is an attempt to address the selection and growth issues by working, not with cohorts of households, but with cohorts of individuals. The gain from doing so is that we dispose completely of selection associated with household formation, which compro-mises our estimates of the effects of growth on saving, leaving only selection through births, deaths, and migration, which does not. The cost is that we do not have data on individual con-sumption, and it is difficult to allocate income to individuals due to the prevalence of family enterprises, so that the standard methodology can no longer be applied.

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Bibliographic Info

Paper provided by Princeton, Woodrow Wilson School - Development Studies in its series Papers with number 182.

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Length: 31 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:priwds:182

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Postal: PRINCETON UNIVERSITY, WOODROW WILSON SCHOOL OF PUBLIC AND INTERNATIONAL AFFAIRS, PRINCETON NEW- JERSEY 08542 U.S.A.
Phone: (609) 258-4800
Web page: http://www.wws.princeton.edu/
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Keywords: ECONOMIC GROWTH ; SAVINGS;

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Cited by:
  1. Orazio P. Attanasio & Miguel Székely, 1998. "Household Savings and Income Distribution in Mexico," Research Department Publications 4152, Inter-American Development Bank, Research Department.
  2. Jere R. Behrman & Suzanne Duryea & Miguel Székely, 1999. "Aging and Economic Opportunities: Major World Regions around the Turn of the Century," Research Department Publications 4180, Inter-American Development Bank, Research Department.
  3. Jere R. Behrman & Suzanne Duryea & Miguel Székely, 1999. "El envejecimiento y las oportunidades económicas: las principales regiones del mundo al final del siglo," Research Department Publications 4181, Inter-American Development Bank, Research Department.
  4. Jaime Saavedra-Chanduví & Martin Valdivia, 2000. "Household and Individual Decision-Making Over the Life Cycle: A First Look at Evidence from Peruvian Cohorts," Research Department Publications 3122, Inter-American Development Bank, Research Department.
  5. Maria Concetta Chiuri, 1999. "Individual Decisions and Household Demand for Consumption And Leisure," CSEF Working Papers 26, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  6. Orazio P. Attanasio & Miguel Székely, 1998. "El ahorro familiar y la distribución del ingreso en México," Research Department Publications 4153, Inter-American Development Bank, Research Department.

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