An Empirical Study of Private Saving in Brazil

Vol. 23 No. 1 (2003)

Jan-Mar / 2003
Published January 1, 2003

How to Cite

Paiva, Claudio, and Sarwat Jahan. 2003. “An Empirical Study of Private Saving in Brazil”. Brazilian Journal of Political Economy 23 (1):124-37.

An Empirical Study of Private Saving in Brazil

Claudio Paiva
Loyola College, Chennai, India.
Sarwat Jahan
Cornell University, Ithaca, NY, USA.
Brazilian Journal of Political Economy, Vol. 23 No. 1 (2003), Jan-Mar / 2003, Pages 124-137


This paper provides an empirical analysis of the determinants of private saving in Brazil during 1965-2000. Our estimates indicate that the degree of offset between private and public saving is relatively high, in line with evidence for other Latin American countries, although it may have started to decline in recent years. In any case, fiscal policy is identified as one of the main instruments to promote the much needed increase in national saving in Brazil. Additional support to savings could come from continued financial market reforms and trade diversification.

JEL Classification: E21; E22.

Keywords: Private savings public savings crowding out