Skip to main content

Private saving, interest rates and liquidity constraints in LDCs: recent evidence

Buy Article:

$47.50 plus tax (Refund Policy)

There is still considerable controversy about the interest rate responsiveness of private saving in developing countries. This paper provides recent evidence based on individual country estimations for a sample of 16 countries. The model used here follows the 'Euler equation approach' and includes rational and forward-looking permanent income consumers together with liquidity-constrained consumers. Overall, for this sample of countries the results obtained in this paper offer new evidence of a low responsiveness of saving to changes in the interest rate. My results also support a strong role of liquidity constraints in these countries.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Publication date: 1997-05-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more