Savings Determinants in Colombia: 1925-1994
AbstractThis paper analyzes the determinants of savings in Colombia using the framework of an intertemporal model. National saving partially responds to temporary changes in output, according to the permanent income hypothesis. Higher government expenditures (in relation to their permanent level) are associated with lower national saving, refuting the existence of Ricardian equivalence. The paper also tests other common hypotheses in regard to saving behavior. In particular, we find that changes in national savings and changes in investment are perfectly correlated, and that savings cause growth (in the Granger sense). The results also indicate that increases in urbanization and age dependency have had a significantly negative effect on private savings in Colombia. Finally, we find that much of the recent reduction in private savings can be accounted for by the increase in current government consumption, as well as by the effects of higher taxation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 3009.
Date of creation: Sep 1997
Date of revision:
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Feldstein, 1991.
"Domestic Saving and International Capital Movements in the Long Run and the Short Run,"
in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 331-353
National Bureau of Economic Research, Inc.
- Feldstein, Martin, 1983. "Domestic saving and international capital movements in the long run and the short run," European Economic Review, Elsevier, vol. 21(1-2), pages 129-151.
- Martin Feldstein, 1982. "Domestic Saving and International Capital Movements in the Long Run and the Short Run," NBER Working Papers 0947, National Bureau of Economic Research, Inc.
- Mauricio Cárdenas & Mauricio Olivera, 1995. "La Crítica de Lucas y la inversión en Colombia: Nueva Evidencia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
- Juan Carlos Echeverry, 1996.
"The Fall in Colombian savings during the 1990s. Theory and evidence,"
BORRADORES DE ECONOMIA
003593, BANCO DE LA REPÚBLICA.
- Juan Carlos Echeverry, . "The Fall in Colombian Savings During the 1990s. Theory and Evidence," Borradores de Economia 061, Banco de la Republica de Colombia.
- Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, June.
- Menchik, Paul L & David, Martin, 1983. "Income Distribution, Lifetime Savings, and Bequests," American Economic Review, American Economic Association, vol. 73(4), pages 672-90, September.
- David Bunting, 1991. "Savings and the Distribution of Income," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 14(1), pages 3-22, October.
- Alejandro López & Martha Misas & Hugo Oliveros, .
"Understanding Consumption in Colombia,"
Borradores de Economia
058, Banco de la Republica de Colombia.
- Della Valle, Philip A & Oguchi, Noriyoshi, 1976. "Distribution, the Aggregate Consumption Function, and the Level of Economic Development: Some Cross-Country Results," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1325-34, December.
- Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
- Jansen, W Jos & Schulze, Gunther G, 1996.
"Theory-Based Measurement of the Saving-Investment Correlation with an Application to Norway,"
Western Economic Association International, vol. 34(1), pages 116-32, January.
- Jansen, W.J. & Schulze, G.G., 1993. "Theory-Based Measurement of the Saving-Investment Correlation with an Application to Norway," Papers 9302-g, Erasmus University of Rotterdam - Institute for Economic Research.
- Giovannini, Alberto, 1985. "Saving and the real interest rate in LDCs," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 197-217, August.
- Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411.
- Corbo, Vittorio & Schmidt-Hebbel, Klaus, 1991.
"Public policies and saving in developing countries,"
Journal of Development Economics,
Elsevier, vol. 36(1), pages 89-115, July.
- Corbo, Vittorio & Schmidt-Hebbel, Klaus, 1991. "Public policies and saving in developing countries," Policy Research Working Paper Series 574, The World Bank.
- Sebastian Edwards, 1995. "Why are Saving Rates so Different Across Countries?: An International Comparative Analysis," NBER Working Papers 5097, National Bureau of Economic Research, Inc.
- Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
- Myers, Stewart C. & Majluf, Nicolás S., 1945-, 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Working papers 1523-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Loumrhari, Ghizlan, 2013.
"Vieillissement démographique, longévité et épargne. Le cas du Maroc
[Ageing population, longevity and save. The case of Morocco]," MPRA Paper 50649, University Library of Munich, Germany.
- Adenutsi, Deodat E., 2010. "Financial development, bank savings mobilization and economic performance in Ghana: evidence from a multivariate structural VAR," MPRA Paper 29571, University Library of Munich, Germany.
- Lavan Mahadeva & Javier Gómez Pineda, .
"The international cycle and Colombian monetary policy,"
Borradores de Economia
557, Banco de la Republica de Colombia.
- Lavan Mahadeva & Javier Gómez Pineda, 2009. "The international cycle and Colombian monetary policy," BORRADORES DE ECONOMIA 005406, BANCO DE LA REPÚBLICA.
- Mondher bellalah & Olivier Levyne & Omar Masood, 2013. "Does co-integration and causal relationship exist between the non-stationary variables for Chinese bank’s profitability? Empirical evidence," THEMA Working Papers 2013-14, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Quartey, Peter, 2005. "Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana," Working Paper Series RP2005/71, World Institute for Development Economic Research (UNU-WIDER).
- Kelly, Roger & Mavrotas, George, 2003. "Financial Sector Development - Futile or Fruitful? An Examination of the Determinants of Savings in Sri Lanka," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luis Daniel Martinez).
If references are entirely missing, you can add them using this form.