Using microdata on expenditure and income for seventeen Latin American and
Caribbean countries, this paper presents stylized facts on saving behavior by age,
education, income, and place of residence. Counterfactual saving rates are computed by
imposing the saving behavior, the population distribution, or the income distribution of
two benchmark economies (the United States and Korea). The results suggest that the
difference in national saving rates between Latin America and Caribbean and the
benchmark economies can mainly be attributed to differences in saving behavior of the
population and, to a lesser extent, to differences in the distribution of the population
by education levels. Other demographic or income distribution differences are not
quantitatively important as explanations of saving rates.
JEL classification: C81,
D12, D14, D91, E21