Do the Rich Save More in Latin America?

This paper follows two strategies to address whether the rich save more. First, the paper implements a two-stage procedure in which the household's lifetime income is instrumented with the education level of the household head and the education level of his/her partner. Second, using information on home assets, the paper constructs a wealth index. There is evidence that the richest households save more in Argentina, Bolivia, Brazil, Costa Rica, Ecuador, Honduras, Mexico, Panama, Paraguay and Peru. On the other hand, no differences are found in saving rates by lifetime income or wealth in Bahamas, Chile, Colombia and Uruguay.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Néstor Gandelman
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Income, Consumption and Saving, C81 - Methodology for Collecting Estimating and Organizing Microeconomic Data • Data Access, D12 - Consumer Economics: Empirical Analysis, E21 - Consumption • Saving • Wealth, Median regressions;Latin America;Saving rates;Two-stage procedures,
Online Access:	http://dx.doi.org/10.18235/0011692 https://publications.iadb.org/en/do-rich-save-more-latin-america
Tags:	Add Tag No Tags, Be the first to tag this record!