Saving and investment: Paradigms, puzzles, policies

World Bank Research Observer

Volumn 11, Issue 1, 1996, Pages 87-117

  Schmidt Hebbel, Klaus ^a   Servén, Luis ^a   Solimano, Andrés ^b  

^a WORLD BANK GROUP   (United States)

^b INTER AMERICAN DEVELOPMENT BANK   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL FORMATION; DEVELOPING WORLD; INVESTMENT DETERMINANTS; SAVINGS BEHAVIOUR;

EID: 0030463591     PISSN: 02573032     EISSN: None     Source Type: Journal    
DOI: 10.1093/wbro/11.1.87     Document Type: Article

References (105)

1. The word "processed" refers to informally reproduced works that may not be commonly available through library systems.
2. Alesina, Alberto, and Roberto Perotti, 1993. "Income Distribution, Political Instability and Investment." NBER Working Paper 4486. National Bureau of Economic Research, Cambridge, Mass. Processed.
3. Alesina, Alberto, and Dani Rodrik. 1992. "Distribution, Political Conflict and Economic Growth: A Simple Theory and Some Empirical Evidence." In Alex Cukierman, Zvi Hercovitz, and Leonardo Leiderman, eds., Political Economy, Growth, and Business Cycles. Cambridge, Mass.: MIT Press.
4. Argimon, Isabel, and Jose Maria Roldan. 1994. "Saving, Investment and International Capital Mobility in EC Countries." European Economic Review 38(1):59-67.
5. Argimon, Isabel, J. Gonzalez-Paramo, and Jose Maria Roldan. 1995. "Does Public Investment Crowd Out Private Investment? Evidence from a Panel of 14 Countries." International Institute of Public Finance, Lisbon. Processed.
6. Arrau, Patricio. 1989. "Intertemporal Monetary Economics: Evidence from the Southern Cone of Latin America." Ph.D. diss., University of Pennsylvania, Economics Department, Philadelphia. Processed.
7. Arrau, Patricio, and Klaus Schmidt-Hebbel. 1993. "Macroeconomic and Intergenerational Welfare Effects of a Transition from Pay-As-You-Go to Fully Funded Pension Systems." World Bank, Policy Research Department, Washington, D.C. Processed.
8. Aschauer, David Alan. 1989a. "Is Public Expenditure Productive?" Journal of Monetary Economics 23(2):177-200.
9. _, 1989b. "Does Public Capital Crowd Out Private Capital?" Journal of Monetary Economics 24(2):171-88.
10. Auerbach, Alan J., and Laurence J. Kotlikoff. 1987. Dynamic Fiscal Policy. Cambridge, U.K.: Cambridge University Press.
11. Auerbach, Alan J., Kevin A. Hassett, and Stephen D. Oliner. 1994. "Reassessing the Social Returns to Equipment Investment." Quarterly Journal of Economics 109(3):789-802.
12. Benhabib, Jess, and Boyan Jovanovic. 1991. "Externalities and Growth Accounting." American Economic Review 81(1):82-113.
13. Berndt, Ernst R., and Bjorn A. Hansson. 1992. "Measuring the Contribution of Public Infrastructure Capital in Sweden." Scandinavian Journal of Economics 94(Supplement):151-68.
14. Berry, Albert. 1985. "On Trends in the Gap between Rich and Poor in Less Developed Countries: Why We Know So Little." Review of Income and Wealth 31(4):337-54.
15. Bird, Richard M. 1992. Tax Policy and Economic Development. Baltimore: Johns Hopkins University Press.
16. Blomstrom, Magnus, Robert Lipsey, and Mario Zejan. 1993. "Is Fixed Investment the Key to Economic Growth?" NBER Working Paper 4436. National Bureau of Economic Research, Cambridge, Mass. Processed.
17. Boone, Peter. 1994. "The Impact of Foreign Aid on Savings and Growth." London School of Economics. June. Processed.
18. Carroll, Christopher D., and Lawrence H. Summers. 1991. "Consumption Growth Parallels Income Growth: Some New Evidence." In B. Douglas Bernheim and John B. Shoven, eds., National Saving and Economic Performance. Chicago: University of Chicago Press.
19. Carroll, Christopher D., and David N. Weil. 1994. "Saving and Growth: A Reinterpretation." Carnegie-Rochester Conference Series on Public Policy 40(June):133-92.
20. Carroll, Christopher D., Jody Overland, and David N. Weil. 1994. "Saving and Growth with Habit Formation." Finance and Economics Discussion Series. Federal Reserve Board, Washington, D.C. Processed.
21. Chenery, Hollis B., and Peter Eckstein. 1970. "Development Alternatives for Latin America." Journal of Political Economy 78(4):966-1006.
22. Chenery, Hollis B., and Alan M. Strout. 1966. "Foreign Assistance and Economic Development." American Economic Review 66(4):679-733.
23. Chenery, Hollis B., and Moshe Syrquin. 1975. Patterns of Development: 1950-1970. New York: Oxford University Press.
24. Chirinko, Robert S. 1993. "Business Fixed Investment Spending: A Critical Survey of Modelling Strategies, Empirical Results, and Policy Implications." Journal of Economic Literature 31(December):1875-1911.
25. Cifuentes, Rodrigo, and Salvador Valdés-Prieto. Forthcoming. "Pension Reforms in the Presence of Credit Constraints." In Salvador Valdés-Prieto, éd., Pensions: Funding, Privatization, and Macroeconomic Policy. Cambridge, U.K.: Cambridge University Press.
26. Cole, Harold L., George J. Mailath, and Andrew Postlewaite. 1992. "Social Norms, Savings Behavior, and Growth." Journal of Political Economy 100(6):1092-1125.
27. Collins, Susan M. 1991. "Saving Behavior in Ten Developing Countries." In B. Douglas Bernheim and John B. Shoven, eds., National Saving and Economic Performance. Chi-cago: University of Chicago Press.
28. Corbo, Vittorio, and Klaus Schmidt-Hebbel. 1991. "Public Policies and Saving in Developing Countries." Journal of Development Economics 36(1):89-115.
29. Corsetti, Giancarlo, and Klaus Schmidt-Hebbel. Forthcoming. "Pension Reform and Growth." In Salvador Valdés-Prieto, ed., Pensions: Funding, Privatization, and Macroeconomic Policy. Cambridge, U.K.: Cambridge University Press.
30. Cummins, Jason G., Kevin A. Hassett, and R. Glenn Hubbard. 1995. "Tax Reforms and Investment: A Cross-Country Comparison." Working Paper 5232. National Bureau of Economics, Cambridge, Mass. Processed.
31. Deaton, Angus. 1989. "Saving in Developing Countries: Theory and Review." In Proceedings of the World Bank Annual Conference on Development Economics. Washington, D.C.: World Bank.
32. _. 1992. Understanding Consumption. New York: Oxford University Press.
33. _. 1995. "Growth and Saving: What Do We Know, What Do We Need to Know, and What Might We Learn." World Bank, Policy Research Department, Washington, D.C. Processed.
34. De Long, J. Bradford, and Lawrence H. Summers. 1991. "Equipment Investment and Economic Growth." Quarterly Journal of Economics 106(2):445-502.
35. _. 1993. "How Strongly Do Developing Economies Benefit from Equipment Investment?" Journal of Monetary Economics 32(3):395-416.
36. Dixit, Avinash K., and Robert S. Pindyck. 1994. Investment under Uncertainty. Princeton, N.J.: Princeton University Press.
37. Dooley, Michael P., Jeffrey A. Frankel, and Donald J. Mathieson. 1987. "International Capital Mobility: What Do Saving-Investment Correlations Tell Us?" IMF Staff Papers 34(2):503-30.
38. Dornbusch, Rudiger, and Sebastian Edwards, eds. 1991. The Macroeconomics of Populism in Latin America. Chicago: University of Chicago Press.
39. Easterly, William R., and Stanley Fischer. 1994. "The Soviet Economic Decline: Historical and Republican Data." Policy Research Working Paper 1284. World Bank, Washington, D.C. Processed.
40. Easterly, William R., and Sergio T. Rebelo. 1993. "Fiscal Policy and Economic Growth: An Empirical Investigation." Journal of Monetary Economics 32(3):417-58.
41. Easterly, William R., Carlos A. Rodríguez, and Klaus Schmidt-Hebbel, eds. 1994. Public Sector Deficits and Macroeconomic Performance. New York: Oxford University Press.
42. Edwards, Sebastian. 1995. "Why Are Saving Rates So Different across Countries? An International Comparative Analysis." NBER Working Paper 5097. National Bureau of Economic Research, Cambridge, Mass. Processed.
43. Engen, Eric M., William G. Gale, and John Karl Scholz. 1994. "Do Saving Incentives Work?" Brookings Papers on Economic Activity 1:85-151.
44. Feldstein, Martin. 1974. "Social Security, Induced Retirement and Aggregate Capital Accumulation." Journal of Political Economy 82(5):905-26.
45. _. ed. 1987. The Effects of Taxation on Capital Accumulation. Chicago: University of Chicago Press.
46. _. 1994. "Tax Policy and International Capital Flows." Weltwirtschaftliches Archiv 130(4):675-97.
47. _. 1995. "Social Security and Saving: New Time Series Evidence." NBER Working Paper 5054. National Bureau of Economic Research, Cambridge, Mass. Processed.
48. Feldstein, Martin, and Philippe Bacchetta. 1991. "National Saving and International Investment." In B. Douglas Bernheim and John B. Shoven, eds., National Saving and Economic Performance. Chicago: University of Chicago Press.
49. Feldstein, Martin, and Charles Horioka. 1980. "Domestic Saving and International Capital Flows." Economic Journal 90(358):314-29.
50. Freshtman, Chaim, and Yoram Weiss. 1993. "Social Status, Culture and Economic Performance." Economic Journal 103(419):946-59.
51. Frankel, Jeffrey A. 1992. "Measuring International Capital Mobility: A Review." American Economic Review 82(2):197-202.
52. Fry, Maxwell J. 1978. "Money and Capital or Financial Deepening in Economic Development?" Journal of Money, Credit and Banking 10(4):464-75.
53. _. 1980. "Saving, Investment, Growth, and the Cost of Financial Repression." World Development 8(4):317-27.
54. _. 1988. Money, Interest, and Banking in Economic Development. Baltimore: Johns Hopkins University Press.
55. Gersovitz, Mark, 1988. "Saving and Development." In Hollis B. Chenery and T. N. Srinivasan, eds., Handbook of Development Economics, vol. 1. Amsterdam: North-Holland.
56. Giovannini, Alberto. 1983. "The Interest Elasticity of Savings in Developing Countries: The Existing Evidence." World Development 11(7):601-7.
57. _. 1985. "Saving and the Real Interest Rate in LDCS." Journal of Development Economics 18(2-3):197-217.
58. Global Coalition for Africa. 1993. "Annual Report." Washington, D.C. Processed.
59. Gramlich, Edward M. 1994. "Infrastructure Investment: A Review Essay." Journal of Economic Literature 32(3):1176-96.
60. Griffin, Keith B. 1970. "Foreign Capital, Domestic Savings, and Economic Development." Bulletin of the Oxford Institute of Economics and Statistics 32(2):99-112.
61. _. 1971. "Reply." Bulletin of the Oxford Institute of Economics and Statistics 33(2):156-61.
62. Gupta, Kanhaya L. 1987. "Aggregate Savings, Financial Intermediation, and Interest Rate." Review of Economics and Statistics 69(2):303-11.
63. Haque, Nadeem Ul, and Peter J. Montiel. 1989. "Consumption in Developing Countries: Tests for Liquidity Constraints and Finite Horizons." Review of Economics and Statistics 71(3):408-15.
64. Jappelli, Tullio, and Marco Pagano. 1994. "Saving, Growth, and Liquidity Constraints." Quarterly Journal of Economics 109:83-109.
65. Jorgenson, Dale W., and Ralph Landau, eds. 1993. Tax Reform and the Cost of Capital: An International Comparison. Washington, D.C.: Brookings Institution.
66. Kaldor, Nicholas. 1957. "A Model of Economic Growth." Economic Journal 67(268): 591-624.
67. King, Robert G., and Ross Levine. 1994. "Capital Fundamentalism, Economic Development, and Economic Growth." Carnegie-Rochester Conference Series on Public Policy 40(June):259-300.
68. Knack, Stephen, and Phillip Keefer. 1994. "Institutions and Economic Performance," University of Maryland, Economics Department. Processed.
69. Levine, Ross, and David Renelt. 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions." American Economic Review 82(4):942-63.
70. Levy, Victor. 1988. "Aid and Growth in Sub-Saharan Africa: The Recent Experience." European Economic Review 32(9):1777-95.
71. Mankiw, N. Gregory, David Romer, and David N. Weil. 1992. "A Contribution to the Empirics of Economic Growth." Quarterly Journal of Economics 107(2):407-37.
72. Mauro, Paolo. 1993. "Political Instability, Growth, and Investment." Harvard University, Economics Department, Cambridge, Mass. Processed.
73. _. 1995. "Corruption and Growth." Quarterly Journal of Economics 110(3):681-712.
74. Mintz, Jack. Forthcoming. "Tax Holidays and Investment." In Anwar Shah, ed., Fiscal Incentives for Investment in Developing Countries. Cambridge, U.K.: Cambridge University Press.
75. Mussa, Michael L., and Morris Goldstein. 1994. "The Integration of World Capital Markets." In Gordon H. Sellon, Jr., ed., Changing Capital Markets: Implications for Monetary Policy. Kansas City, Mo.: Federal Reserve Bank of Kansas.
76. Obstfeld, Maurice. 1986. "Capital Mobility in the World Economy: Theory and Measurement." Carnegie-Rochester Conference Series on Public Policy 24(Spring):55-104.
77. _. 1994. "International Capital Mobility in the 1990s." International Finance Discussion Paper 472. Board of Governors, Federal Reserve System, Washington, D.C. Processed.
78. Papanek, Gustav F. 1972. "The Effect of Aid and Other Resource Transfers on Savings and Growth in Less Developed Countries." Economic Journal 82(327):934-51.
79. _. 1973. "Aid, Foreign Private Investment, Savings, and Growth in Less Developed Countries." Journal of Political Economy 81(1):121-30.
80. Persson, Torsten, and Guido Tabellini. 1992. "Growth, Distribution, and Policies." In Alex Cukierman, Zvi Hercovitz, and Leonardo Leiderman, eds., Political Economy, Growth, and Business Cycles. Cambridge, Mass.: MIT Press.
81. Pindyck, Robert S., and Andrés Solimano. 1993. "Economic Stability and Aggregate Investment." In Oliver J. Blanchard and Stanley Fischer, eds., NBER Macroeconomics Annual. Cambridge, Mass.: MIT Press.
82. Reynoso, Alejandro. 1988. "Financial Liberalization and the Interest Rate Elasticity of Savings in Developing Countries." Ph.D. diss., Massachusetts Institute of Technology, Economics Department, Cambridge, Mass. Processed.
83. Robinson, Joan. 1962. Essays in the Theory of Economic Growth. London: Macmillan.
84. Romer, Paul. 1987. "Crazy Explanations for the Productivity Slowdown." In Stanley Fisher, ed., NBER Macroeconomics Annual. Cambridge, Mass.: MIT Press.
85. _. 1993. "Idea Gaps and Object Gaps in Economic Development." Journal of Monetary Economics 32(3):543-74.
86. Schmidt-Hebbel, Klaus. 1987. "Foreign Shocks and Macroeconomic Adjustment in Small Open Economies." Ph.D. diss., Massachusetts Institute of Technology, Economics Department, Cambridge, Mass. Processed.
87. Schmidt-Hebbel, Klaus, Steven B. Webb, and Giancarlo Corsetti. 1992. "Household Saving in Developing Countries: First Cross-Country Evidence." World Bank Economic Review 6(3):529-47.
88. Schumpeter, Joseph A. 1934. The Theory of Economic Development. Cambridge, Mass.: Harvard University Press.
89. Servén, Luis, and Andrés Solimano, eds. 1993. Striving for Growth after Adjustment: The Role of Capital Formation. Washington, D.C.: World Bank.
90. Shah, Anwar, ed. Forthcoming. Fiscal Incentives for Investment in Developing Countries. Cambridge, U.K.: Cambridge University Press.
91. Shleifer, Andrei. 1994. "Establishing Property Rights." Paper presented at the Annual World Bank Conference on Development Economics, Harvard Institute of Economic Research Discussion Paper 1683. Harvard University, Cambridge, Mass. Processed.
92. Srinivasan, T. N. 1993. "Saving in the Development Process." In James H. Gapinski, ed., The Economics of Saving. Boston: Kluwer.
93. _. 1994. "Data Base for Development Analysis: An Overview." Journal of Development Analysis 44(1):3-27.
94. Summers, Lawrence H. 1988. "Tax Policy and International Competitiveness." In Jacob A. Frenkel, ed., International Aspects of Fiscal Policies. Chicago: University of Chicago Press.
95. Taylor, Alan M. 1994. "Domestic Saving and International Capital Flows Reconsidered." NBER Working Paper 4892. National Bureau of Economic Research, Cambridge, Mass. Processed.
96. Tesar, Linda L., and Ingrid M. Werner. 1992. "Home Bias and the Globalization of Securities Markets." NBER Working Paper 4218. National Bureau of Economic Research, Cambridge, Mass. Processed.
97. Visaria, Pravin M. 1980. Poverty and Living Standards in Asia: An Overview of the Main Results and Lessons of Selected Household Surveys. Living Standards Measurement Study Working Paper 2. Washington, D.C.: World Bank.
98. Weisskopf, Thomas E. 1972. "The Impact of Foreign Capital Inflows on Domestic Savings in Underdeveloped Countries." Journal of International Economics 2(1):25-38.
99. World Bank. 1993. The East Asian Miracle: Economic Growth and Public Policy. New York: Oxford University Press.
100. _. 1994a. Adjustment in Africa: Reform, Results, and the Road Ahead. New York: Oxford University Press.
101. _. 1994b. Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. New York: Oxford University Press.
102. Young, Allyn. 1928. "Increasing Returns and Economic Progress." Economic Journal 38(152):527-42.
103. Young, Alwyn. 1994a. "Lessons from the East-Asian NICS: A Contrarian View." NBER Working Paper 4482. National Bureau of Economic Research, Cambridge, Mass. Processed.
104. _. 1994b. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience." NBER Working Paper 4680. National Bureau of Economic Research, Cambridge, Mass. Processed.
105. Zou, Heng-fu. 1993. "The Capitalist-Spirit Approach to Growth: A Perspective from the History of Economic Analysis." World Bank, Policy Research Department, Washington, D.C. Processed.