Private Savings in OECD Countries: An Overview (1999-2007)

Abstract

The studies in recent years display the importance of factors relevant to saving decisions. According to studies, private savings are affected by inflation rate, growth, income, current account balance, real interest rate, dependency rate, private credit and government savings. This paper investigates the determinants of private savings by using Dynamic Panel Data Analysis for 20 OECD countries over the period 1999-2007. The findings indicate that lagged saving rates, credit to private sector, current account balance and inflation rate have a positive impact theeffect on private savings rate, while government saving and dependency rate have a negative effects.