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International differences in saving rates and the life cycle hypothesis: A comment

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  • Koskela, Erkki
  • Virén, Matti

Abstract

In a recent paper, John Graham (1987) has argued that the life cycle approach. performs rather well in accounting for intercountry differences in household saving rates so that the negative evidence sometimes reported i s not warranted. This comment presents pieces of evidence against this view. Some new evidence from a somewhat larger data set casts considerable doubt on the ability of the conventional life cycle and demographic variables to explain intercountry. differences in household saving rates. Graham's results, though taken at face value, are robust neither to data sample nor to time period.

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  • Koskela, Erkki & Virén, Matti, 1989. "International differences in saving rates and the life cycle hypothesis: A comment," Bank of Finland Research Discussion Papers 3/1989, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp1989_003
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    References listed on IDEAS

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    1. Martin Feldstein, 1980. "International Differences in Social Security and Saving," NBER Chapters, in: Econometric Studies in Public Finance, pages 225-244, National Bureau of Economic Research, Inc.
    2. Koskela, Erkki & Viren, Matti, 1983. "A note on long-term determinants of the private savings ratio," Economics Letters, Elsevier, vol. 11(1-2), pages 107-113.
    3. Martin S. Feldstein, 1977. "Social Security and Private Savings: International Evidence in an Extended Life-Cycle Model," International Economic Association Series, in: Martin S. Feldstein & Robert P. Inman (ed.), The Economics of Public Services, chapter 8, pages 174-205, Palgrave Macmillan.
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