Presents both theoretical and empirical evidence for the claim that growth in earnings generates higher saving (the growth‐to‐saving hypothesis). It also presents a number of theoretical and empirical models aimed at explaining the connection between interest rates and intertemporal substitution.
Keywords: growth‐to‐savings; interest rates; intertemporal substitution
Chapter. 12885 words. Illustrated.
Subjects: Macroeconomics and Monetary Economics
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