IMF Working Papers

Saving in Latin America and the Caribbean: Performance and Policies

By Francesco Grigoli, Alexander Herman, Klaus Schmidt-Hebbel

May 18, 2015

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Francesco Grigoli, Alexander Herman, and Klaus Schmidt-Hebbel. Saving in Latin America and the Caribbean: Performance and Policies, (USA: International Monetary Fund, 2015) accessed November 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes saving patterns and determinants in Latin America and the Caribbean (LAC), including key policy variables and regimes. The review of previous empirical studies on LAC saving reveals contradictions and omissions. This paper presents empirical results of an extensive search of determinants of private and public saving rates, adding previously neglected variables (including different measures of key external prices and macroeconomic policy regimes), in linear form and in interactions with other saving determinants. It analyzes statistical differences in saving determinants between LAC and the rest of the world in a nested econometric framework, and discusses differences across three country subgroups within LAC. The results highlight commonalities and differences in saving behavior between LAC and other world regions, as well as within LAC, identifying the role of key policy variables and regimes.

Subject: Fiscal policy, Fiscal rules, Income, Inflation targeting, Monetary policy, National accounts, Private savings, Technology, Technology transfer

Keywords: Asia and Pacific, Consumption, Discount factor raise saving, Europe, Fiscal rules, Growth rate, Household saving, Income, Inflation targeting, LAC dummy, LAC oil exporter, LAC saving, LAC subgroup, Latin America, Middle East and Central Asia, Oil exporter, Private saving, Private savings, Private sector, Public saving, Saving determinant, Saving effect, Saving rate, Standard deviation, Technology transfer, WP

Publication Details

  • Pages:

    41

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2015/108

  • Stock No:

    WPIEA2015108

  • ISBN:

    9781513538167

  • ISSN:

    1018-5941

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