The Quantitative Consequences of Raising the U.S. Saving Rate
The authors investigate the consequences of a permanent unphased increase in the U.S. gross saving rate. They find that "the sacrifice time"--the time that elapses until consumption surpasses the value it would have had under the initial saving rate--is roughly six years and is insensitive to the percentage increase in the saving rate ([Delta sub s]). The percentage gain in output at the end of decade--" the decade gain"--is roughly 26% of [Delta sub s], while the percentage gain in consumption is roughly 8% of [Delta sub s]. The "saving rate return"--the internal rate of return on a permanent increase in the saving rate--is roughly 16% and is insensitive to [Delta sub s]. Copyright 1991 by MIT Press.
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Volume (Year): 73 (1991)
Issue (Month): 3 (August)
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