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Title: |
A Time-Series Approach to the Determination of Savings Rates |
| Author: |
Paul, Rodney J. |
| Author
Affiliation: |
St. Bonaventure University |
| Source: |
International Economic Journal, June 2004, v. 18, no. 2, pp. 147-159 |
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Publication Date: |
June 2004 |
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Abstract: |
Time series analysis is used to study the savings rate and its determinants. The real effective exchange rate is introduced as a new independent variable in the savings function. Borrowing constraints, the current account balance, real rate of interest, macroeconomic stability, and age dependency are shown to be significant determinants of the savings rate. In addition, the real effective exchange rate is found to be significant across countries. Violations of Purchasing Power Parity are shown to explain some of the differences in savings rates between Canada, Japan, the United Kingdom and the United States. |
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