Growth and Saving Among Individuals and Households
The lifecycle theory of saving and consumption predicts that changes in an economy's rate of economic growth will affect its aggregate saving rate by changing the lifetime resources of younger people relative to older people. However, studies that track the saving behavior of cohorts of household heads over time as they age have yielded estimates of age-saving profiles that are too flat for growth to have much effect on the aggregate saving rate. One problem with the cohort approach is that multigenerational households are common in many counties, and the age-saving profiles of households may be quite different from the age-saving profiles of individuals that make up households. In this paper, we propose a method for estimating individual age-saving profiles using household data. This method is applied to data from Taiwan and Thailand. We find that the individual method yields results that are more favorable to the lifecycle model. These results imply that changes in the rate of economic growth may in some circumstances have large effects on the aggregate saving rate. However, the size and sign of these effects depends on the rate of economic growth and the rate of population growth, and in many cases the effect of growth on saving is small. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 82 (2000)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:82:y:2000:i:2:p:212-225. 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: (Anna Pollock-Nelson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.