Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98310
Authors: 
Schultz, T. Paul
Year of Publication: 
2004
Series/Report no.: 
Center Discussion Paper 901
Abstract: 
Life cycle savings is proposed as one explanation for much of the increase in savings and economic growth in Asia. The association between the age composition of a nation's population and its savings rate, observed within 16 Asian countries from 1952 to 1992, is re-estimated here to be less than a quarter the size reported in a seminal study, which assumed lagged savings is exogenous. Specification tests as well as common sense imply, moreover, that lagged savings is likely to be endogenous, and when estimated accordingly there remains no significant dependence of savings on the age composition, measured in several ways. Research should consider lifetime savings as a substitute for children, and model the causes for the decline in fertility which changes the age compositions and could thereby account for savings and growth in Asia.
Subjects: 
Life Cycle Savings
Aging
Asian Growth
Demographic Transition
JEL: 
D91
J11
O11
O53
Document Type: 
Working Paper

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