Understanding the Determinants of Household Saving: Micro Evidence for Latin America

Produced by: 
Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)
Available from: 
October 2015
Paper author(s): 
Ricardo Bebczuk
Leonardo Gasparini
Noelia Garbero
Julian Amendolaggine
Financial Economics

This study centers on the household saving rate in Latin America by constructing a new database from 27 household surveys in 10 countries. At the statistical level, about half of the households present negative saving. This fact, coupled with the discrepancy with national accounts data, suggests some degree of income underreporting and/or consumption overreporting. The estimations highlight the overriding positive role of income in shaping saving decisions. Many other controls prove to be significant as well. In terms of household saving promotion, our paper leaves little room for optimism. 


Research section: 
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