Sep 2017
Author(s): Fernandez, Andres; Imrohoroglu, Ayse; Tamayo, Cesar
Latin American countries have long exhibited low levels of saving rates when compared to other countries in relatively similar stages of economic development (e.g., Asian economies). Motivated by…
Jan 2017
Author(s): Jones, Mark P.
In the early 2000s the Inter-American Development Bank launched a visionary and influential research agenda that dramatically improved understanding of the policymaking process (PMP) in Latin America…
Aug 2016
Author(s): Cavallo, Eduardo A.; Eichengreen, Barry; Panizza, Ugo
A surprisingly large number of countries have been able to finance a significant fraction of domestic investment using foreign finance for extended periods. While many of these episodes are in low-…
Jun 2016
Author(s): Ruiz Pozuelo, Julia; Slipowitz, Amy; Vuletin, Guillermo
This article challenges recent findings that democracy has sizable effects on economic growth. As extensive political science research indicates that economic turmoil is responsible for causing or…
Jun 2016
Author(s): Ruiz Pozuelo, Julia; Slipowitz, Amy; Vuletin, Guillermo
This online appendix presents a thorough analysis of the nature, dynamics, and most important events for 38 cases of democratization, including the list of democracy experts and key country-specific…
Jun 2016
Author(s): Cavallo, Eduardo A.; Fernández-Arias, Eduardo; Marzani, Matías
This paper shows, using probit analysis, that low national savings increase the risk of macroeconomic crisis. Foreign savings are a poor substitute of national savings not only for domestic…
Jun 2016
Author(s): Cavallo, Eduardo A.
Why should people -and economies- save? The typical answer usually focuses on the need to protect against future shocks, to smooth consumption during hard times, in short, to save for the proverbial…
Jun 2016
Author(s): Cavallo, Eduardo A.
Savings in an economy matter for development. At the macro level, savings determine how much a country can invest, and they have implications for growth and economic stability. At the individual…
Jun 2016
Author(s): Cavallo, Eduardo A.
In advanced economies, the vast majority of savings are intermediated through formal financial instruments. This intermediation can take one of three forms: direct financing, with individuals holding…
Jun 2016
Author(s): Cavallo, Eduardo A.
Why save more? One good reason is to invest more. Economies that save more can take advantage of investment opportunities and thus grow faster. Investing to improve access to education and health,…
Jun 2016
Author(s): Cavallo, Eduardo A.
Countries invest in physical capital in order to grow. In principle, domestic investment can be financed with either national or foreign financing. However, foreign financing is not a good substitute…
Jun 2016
Author(s): Cavallo, Eduardo A.
When it comes to consumption and saving, there are two groups of people: those who produce resources actively in the labor market, and those who depend on what others produce because they are either…
Jun 2016
Author(s): Cavallo, Eduardo A.
Pension systems in Latin America and the Caribbean are broken. To begin with, they cover less than half the population. Moreover, flaws in structure and financing make some of them unsustainable,…
Jun 2016
Author(s): Cavallo, Eduardo A.
Increasing national saving requires everyone to pitch in, including the government. Traditionally, policies to boost public saving have focused on either raising taxes or cutting spending—or both.…
Jun 2016
Author(s): Cavallo, Eduardo A.
Ultimately, Latin America’s low saving rate can be traced back to individual households throughout the region. Why do they—or do they not—save and how? Answering this question is not an easy task.…
Jun 2016
Author(s): Cavallo, Eduardo A.
Saving rates are relatively low in Latin America and the Caribbean, as is productivity growth. Are these two facts related? Much of this book has argued that indeed, a relationship exists and that…
Apr 2016
Author(s): Busso, Matías; Fernandez, Andres; Tamayo, Cesar
This technical note considers whether low savings in Latin America and the Caribbean may result from low productivity rather than vice versa. Economies with low TFP growth tend to be economies in…
Apr 2016
Author(s): Frisancho, Verónica
This technical note examines demand-side constraints households in Latin America and the Caribbean face when making saving decisions, particularly households from lower income deciles. This emphasis…
Apr 2016
Author(s): Schuster, Christian
Merit-based selection of bureaucrats is central to state capacity building, yet rare in developing countries. Most executives instead favor patronage -political discretion- in public employment.…
Mar 2016
Author(s): Cruces, Juan José
This paper measures the flow of funds into the real estate sector for the city of Buenos Aires since 1992 and compares it to traditional savings instruments. For each dollar that went into the city…