The savings multiplier

• 成果类型: Article
• 署名作者: Mehlum, Halvor; Torvik, Ragnar; Valente, Simone
• 署名单位: University of Oslo; Norwegian University of Science & Technology (NTNU); University of East Anglia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.08.009
• 发表日期: 2016
• 页码: 90-105
• 关键词: Intertemporal choices; China's savings puzzle; overlapping generations

摘要

A theory of macroeconomic development based on the novel concept of savings multiplier is developed. Capital accumulation changes relative prices, amplifying incentives to save as the economy grows. The savings multiplier hinges on two mechanisms. First, accumulation raises wages and leads to redistribution from the consuming old to the saving young. Second, higher wages raise the price of old-age care and, in anticipation of this, the young save more. Our theory captures important aspects of China's development and suggests new channels through which the one child policy and the dismantling of social benefits have fueled China's savings rates. (C) 2016 Elsevier B.V. All rights reserved.