The Savings Trap and Economic Take-Off [electronic resource]
- Author
- Ghosh, Atish R.
- Published
- Washington : International Monetary Fund Nov. 1992
- Physical Description
- 49 p.
- Additional Creators
- Asilis, Carlos M.
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- License restrictions may limit access.
- Summary
- Annotation We develop an overlapping generations model of a developing economy in which culture and technology interact to determine savings, investment and growth. Investment is assumed to involve intermediation or other costs which may, in each period, result in either of two stable equilibria for the savings rate. At the good equilibrium, savings and growth are higher than at the bad equilibrium, whether the country attains the good or bad equilibrium in any period depends on each individuals belief about the savings behavior of other agents in the economy. the model implies that fiscal policy or public activities to facilitate private investment can influence saving. In particular, a sustained period of fiscal restraint can shift the economy onto a higher savings and growth path.
- Genre(s)
- ISBN
- 9781455271597
1455271594 (E-Book)
View MARC record | catkey: 15223773