Artículo
Is business saving really none of our business?
Fecha de publicación:
01/2016
Editorial:
Taylor & Francis
Revista:
Applied Economics
ISSN:
0003-6846
e-ISSN:
1466-4283
Idioma:
Inglés
Tipo de recurso:
Artículo publicado
Clasificación temática:
Resumen
This paper revisits the role of business saving in the economy by critically scrutinizing the existing macroeoconomic and corporate finance literatures. We assemble and exploit a broad international, unbalanced panel of 47 countries over 1995-2013 on saving and investment by institutional sector to shed new light on the relevance of business saving for private saving and investment around the world. We show that businesses contribute on average more than 50% of national saving around the world. Using this unique dataset, we find evidence of partial piercing of the corporate veil: a $1 increase in business saving gives rise to a decrease of approximately $0.40 in household saving-thereby raising private saving by as much as $0.60. We also find that a $1 increase in business saving increases private investment by as much as $0.20 in countries where limited financing is a binding constraint on firms’ investment. The evidence suggests that business saving and external financing are complementary sources of financing for investment.
Palabras clave:
Business Saving
,
Corporate Finance
,
Corporate Veil
,
Domestic Saving
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Colecciones
Articulos(CCT - LA PLATA)
Articulos de CTRO.CIENTIFICO TECNOL.CONICET - LA PLATA
Articulos de CTRO.CIENTIFICO TECNOL.CONICET - LA PLATA
Citación
Bebczuk, Ricardo Néstor; Cavallo, Eduardo; Is business saving really none of our business?; Taylor & Francis; Applied Economics; 48; 24; 1-2016; 2266-2284
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