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Why do some countries save more than others?

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  • Shusaku Yamamoto

Abstract

Some countries have the resources and capacity to save more than the other countries. This paper analyses the determinants of annual saving. The analysis uses the optimal saving function which is derived from the household inter-temporal utility maximisation. The predictions from the comparative statics are compared with micro survey data in Japan and the US. In addition, the preference of inter-temporal consumptions is estimated. These comparisons and estimations suggest that higher annual saving could be explained by higher income, lower interest rates, shorter saving spans, longer retirement spans, and higher preference for retirement-span consumption.

Suggested Citation

  • Shusaku Yamamoto, 2004. "Why do some countries save more than others?," Centre of Policy Studies/IMPACT Centre Working Papers g-142, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-142
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    References listed on IDEAS

    as
    1. Horioka, Charles Yuji, 1990. "Why is Japan's household saving rate so high? A literature survey," Journal of the Japanese and International Economies, Elsevier, vol. 4(1), pages 49-92, March.
    2. Horioka, Charles Yuji & Watanabe, Wako, 1997. "Why Do People Save? A Micro-Analysis of Motives for Household Saving in Japan," Economic Journal, Royal Economic Society, vol. 107(442), pages 537-552, May.
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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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