Author: Tullio Jappelli
Publisher:
ISBN:
Category : Consumers
Languages : en
Pages : 60

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Author: Jose De Gregorio
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40

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Book Description
This paper studies the effects that borrowing constraints have on savings and growth and argues that, though they increase savings, their effect on growth is ambiguous. Empirical evidence on the extent of borrowing constraints as well as savings, investment, human capital accumulation and growth performance for industrialized countries is presented. A simple model to show the effects of borrowing constraints on savings is developed. Then the model is extended to analyze the effects of borrowing constraints on human capital accumulation and growth. It is shown that borrowing constraints increase savings, but reduce human capital accumulation.

Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Angus Deaton
Publisher:
ISBN:
Category :
Languages : es
Pages : 38

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Author: Klaus Schmidt-Hebbel
Publisher: Cambridge University Press
ISBN: 0521632951
Category : Business & Economics
Languages : en
Pages : 213

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Book Description
A look at major research and policy issues surrounding saving across the world, first published in 1999.

Author: Chris Carroll
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 40

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Book Description
Economists working with numerical solutions to the optimal consumption/saving problem under uncertainty have long known that there are quantitatively important interactions between liquidity constraints and precautionary saving behavior. This paper provides the analytical basis for those interactions. First, we explain why the introduction of a liquidity constraint increases the precautionary saving motive around levels of wealth where the constraint becomes binding. Second, we provide a rigorous basis for the oft-noted similarity between the effects of introducing uncertainty and introducing constraints, by showing that in both cases the effects spring from the concavity in the consumption function which either uncertainty or constraints can induce. We further show that consumption function concavity, once created, propagates back to consumption functions in prior periods. Finally, our most surprising result is that the introduction of additional constraints beyond the first one, or the introduction of additional risks beyond a first risk, can actually reduce the precautionary saving motive, because the new constraint or risk can hide' the effects of the preexisting constraints or risks

Author: Xiaonian Xu
Publisher:
ISBN:
Category :
Languages : en
Pages : 260

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Author: Liling Feng
Publisher:
ISBN: 9783836429924
Category : Business & Economics
Languages : en
Pages : 112

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Book Description
In the last several decades, China has been experiencing dramatic economic development and institutional transition. One notable feature in this period is its very high saving rate. Although it is controversial whether high saving rate is beneficial to the economy or not, a fact widely accepted is that the high saving rate has been playing an important role in shaping China's economy. But why do Chinese save so much? In this book, we try to analyze China's saving using the overlapping life cycle model, where the basic model is revised to better match China's reality. Two dominant facts are emphasized in our analysis, i.e., transitory high income growth and abnormal demography changes due to abnormal high birth rate. Besides, China, as a transitional economy, is also characterized by financial market imperfections such as liquidity constraints. This book should help answer the questions: - To what extent are Chinese consumers liquidity-constrained?- What are the reasons and welfare impacts of liquidity constraints? The book is addressed to industrial analysts from finance and investment. It is also directed towards researchers in economics and policy makers from governments.

Author: Emilio Fernandez-Corugedo
Publisher:
ISBN:
Category : Consumer behavior
Languages : en
Pages : 38

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Author: Pierre-Richard Agénor
Publisher: World Bank Publications
ISBN:
Category : Ahorro
Languages : en
Pages : 36

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Book Description
When households face the possibility of borrowing constraints in bad times, favorable movements in the permanent component of the terms of trade may lead to higher rates of private savings.