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Secular Trends in U.S Saving and Consumption

Author

Listed:
  • Kaiji Chen

    () (Economics University of Oslo)

  • Ayse Imrohoroglu

    (University of Southern California)

  • Selahattin Imrohoroglu

    (University of Southern California)

Abstract

National saving rate in the U.S. has been declining since the 1960s while the share of consumption in output has been increasing. We explore if a standard growth model can explain the secular trends observed in this time period. Our results indicate that the standard neoclassical growth model is able to generate saving rates and consumption that are remarkably similar to the data during 1960-2004. Our quantitative findings identify the growth rate of total factor productivity as the main factor generating the secular trends in the behavior of consumption and saving in the U.S

Suggested Citation

  • Kaiji Chen & Ayse Imrohoroglu & Selahattin Imrohoroglu, 2006. "Secular Trends in U.S Saving and Consumption," Computing in Economics and Finance 2006 494, Society for Computational Economics.
  • Handle: RePEc:sce:scecfa:494
    as

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    File URL: http://repec.org/sce2006/up.8847.1141641232.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Consumption; Saving;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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