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

$54.78 plus tax (Refund Policy)

Buy Article:


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.

Document Type: Research Article


Publication date: May 1, 1997

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect 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