IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/1988-010.html
   My bibliography  Save this paper

Dependency Rates and Private Savings Behavior in Developing Countries

Author

Listed:
  • International Monetary Fund

Abstract

A firm theoretical basis for the empirical relationship between dependency rates and savings behavior in developing countries is still lacking. Two demographic extensions of the representative household’s stochastic dynamic optimization problem are presented here. It is shown that the relationship between expected dependency rates and consumption growth depends on two parameters: the demographically varying committed consumption and the intertemporal elasticity of substitution. Thus, the expected path of demographic variables can provide information on the consumers’ willingness to smooth consumption, and on the savings responsiveness to changes in the real interest rate.

Suggested Citation

  • International Monetary Fund, 1988. "Dependency Rates and Private Savings Behavior in Developing Countries," IMF Working Papers 1988/010, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1988/010
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=28062
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:1988/010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.