{"title":"A relative answer to the growth–saving puzzle","authors":"Noam Gruber","doi":"10.1111/infi.12426","DOIUrl":null,"url":null,"abstract":"<p>Prolonged rapid growth, that is, the ‘catching-up’ process through which countries close the gap to the development frontier, is known to be accompanied by high rates of household saving. This phenomenon is central in explaining the direction of international capital flows and trade imbalances in the past several decades, yet it is very much in contradiction to prevailing macroeconomic theory. This paper finds that a standard life-cycle model, even when integrated with uncertainty about future growth and with credit constraints, is completely unable to replicate the relations between growth and saving, represented by three stylized facts gleaned from the empirical literature. However, adding utility from relative consumption to the model allows for the full replication of these relations.</p>","PeriodicalId":46336,"journal":{"name":"International Finance","volume":"26 2","pages":"139-171"},"PeriodicalIF":1.3000,"publicationDate":"2022-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Finance","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/infi.12426","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 1
Abstract
Prolonged rapid growth, that is, the ‘catching-up’ process through which countries close the gap to the development frontier, is known to be accompanied by high rates of household saving. This phenomenon is central in explaining the direction of international capital flows and trade imbalances in the past several decades, yet it is very much in contradiction to prevailing macroeconomic theory. This paper finds that a standard life-cycle model, even when integrated with uncertainty about future growth and with credit constraints, is completely unable to replicate the relations between growth and saving, represented by three stylized facts gleaned from the empirical literature. However, adding utility from relative consumption to the model allows for the full replication of these relations.
期刊介绍：
International Finance is a highly selective ISI-accredited journal featuring literate and policy-relevant analysis in macroeconomics and finance. Specific areas of focus include: · Exchange rates · Monetary policy · Political economy · Financial markets · Corporate finance The journal''s readership extends well beyond academia into national treasuries and corporate treasuries, central banks and investment banks, and major international organizations. International Finance publishes lucid, policy-relevant writing in macroeconomics and finance backed by rigorous theory and empirical analysis. In addition to the core double-refereed articles, the journal publishes non-refereed themed book reviews by invited authors and commentary pieces by major policy figures. The editor delivers the vast majority of first-round decisions within three months.
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
