Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146428
Authors: 
Becerra, Oscar
Cavallo, Eduardo A.
Noy, Ilan
Year of Publication: 
2015
Series/Report no.: 
IDB Working Paper Series IDB-WP-615
Abstract: 
Using reduced-form regression models, this paper shows that average predicted private saving rates in Latin America and the Caribbean (LAC) are significantly lower than in other regions, particularly Emerging Asia (about 4 percentage points of GDP on average). Predicted public saving rates in LAC are also lower than in Emerging Asia, but by a smaller margin (1 percentage point of GDP on average). It is further shown that LAC private saving rates are below the region-specific prediction by approximately 1. 5 percentage points of GDP on average. Finally, it is found that a greater reliance on external savings does not fully close the negative estimated private saving gap, reducing it by less than 1 percentage point. No gap is found in the case of public saving rates, suggesting that the lower predicted public saving rate in LAC is accounted for by the known determinants of fiscal policy.
Subjects: 
Saving rates
Saving gap
Determinants of saving
Private saving
Public saving
JEL: 
E21
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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