"Life Cycle" Hypothesis of Saving: Aggregate ... - Arabictrader.com

Table 4.5
Estimates for Developing Countries (1)
Sample size & National Terms Dummy Adj.
estimation technique Constant g income CPI of trade Active for debt R 2 & S.E.
1 85 10.7 0.275 9.7 ¥ 10 -3 2 ¥ 10 -3 -0.53 0.40 5.02 0.43
OLS (2) (1.2) (2.0) (1.52) (1.2) (3.1) (2.3) (3.05) 6.83
2 85 2.7 1.32 1.5 ¥ 10 -3 2.35 ¥ 10 -3 -0.56 0.16 2.73 0.53
OLS (0.3) (5.2) (2.8) (-0.8) (-3.9) (1.0) (1.7) 5.89
3 85 6.8 1.30 -1557 -0.60 0.17 4.2 0.59
OLS (0.9) (5.5) (-4.5) (-4.5) (1.3) (2.9) (5.49)
4 82 -16.8 1.30 -894 -0.51 0.58 4.5 0.84
WLS (-1.7) (6.5) (-2.6) (-4.3) (3.3) (3.1) 3.73
(pop.)
5a 24 22.3 2.0 11688 -0.91 -0.13 2.2 0.44
OLS (3) (1.2) (3.9) (1.0) (-3.2) (-0.5) (0.8) 5.81
(high)
5b 61 6.2 1.33 -1090 -0.50 0.14 4.0 0.56
OLS (3) (0.7) (5.2) (-3.1) (-3.4) (0.8) (2.4) 4.96
(low)
6a 42 2.9 1.67 -1494 -0.63 0.20 4.3 0.58
OLS (4) (0.3) (4.7) (-3.0) (-2.6) (1.2) (1.9) 5.65
(positive)
6b 43 3.6 1.37 -1426 -0.57 0.23 5.5 0.40
OLS (4) (0.3) (1.9) (-2.6) (-3.3) (0.9) (2.3) 5.60
(negative)
(1) The data used for the regressions in this table were obtained from the IMF and are defined as follows:
g = real annual GDP per capita growth over the period 1982–1988;
national income = per capita national income except in regressions 3–6 where the reciprocal of per capita national income is used;
cpi
= consumer price index;
terms of trade = measure of a country’s trade balance;
active = the proportion of the population aged 15–64;
dummy for debt = indicator variable establishing whether or not a country has debt servicing problems.
(2) This regression is the one reported on page 59 of the IMF paper cited as the source for the data in this table.
(3) This pair of regressions was fitted to the data after the observations were partitioned into two groups: 1) high income countries with per capita national
income greater than $1650, and 2) low income countries with per capita national income less than $1650.
(4) This pan of regressions was fitted to the data after the observations were partitioned into two groups: 1) those with positive growth and 2) those with
negative growth.
Recent Declines in the Savings Rate 133