Dependency Rates and Private Savings Behavior in Developing Countries
Empirical results establishing a firm empirical relationship between dependency rates and savings behavior in developing countries are still lacking. Two demographic extensions of the representative household's stochastic dynamic optimization problem are presented. The relationship between expected dependency rates and consumption growth is shown to depend on two parameters: demographically varying committed consumption and the intertemporal elasticity of substitution. Thus, the expected path of demographic variables can provide information on consumer willingness to smooth consumption, and on the savings responsiveness to changes in the real interest rate.
Volume (Year): 36 (1989)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:36:y:1989:i:1:p:166-181. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulia Badea)
If references are entirely missing, you can add them using this form.