Table 3.
Estimated Saving Equation with Old-Age Survival Index and Youth Dependency
| (1) Whole World | (2) West and East Asia | (3) Non-West, Non East Asia | ||||
|---|---|---|---|---|---|---|
| OLS | 2SLS | OLS | 2SLS | OLS | 2SLS | |
| q* Ygr | 8.2055 *** | 14.8399 *** | 8.3714 ** | 14.8129 *** | 9.1327 *** | 15.7251 *** |
| (1.8606) | (2.6660) | (3.7148) | (3.5266) | (1.9979) | (2.9857) | |
| dq | 0.8615 | 0.5104 | 1.7954 ** | 1.8115 ** | 0.3284 | −0.2538 |
| (0.5266) | (0.5752) | (0.8192) | (0.8519) | (0.5962) | (0.6823) | |
| D 1* Ygr | 0.7461 | 0.9319 | −3.0912 *** | −1.7057 | 0.4379 | 1.0155 |
| (0.7639) | (0.9345) | (1.1164) | (1.1246) | (0.9871) | (1.2978) | |
| Ygr | −3.7274 *** | −6.5927 *** | −2.9073 | −6.4693 *** | −3.6892 ** | −6.8701 *** |
| (1.3526) | (1.9655) | (2.4628) | (2.3958) | (1.5577) | (2.4026) | |
| PRI | −0.0053 * | −0.0028 | 0.0422 ** | 0.0350 * | −0.0084 ** | −0.0064 * |
| (0.0032) | (0.0036) | (0.0207) | (0.0212) | (0.0035) | (0.0036) | |
| y70 | 0.0100 | 0.0075 | 0.0093 | 0.0105 | 0.0069 | 0.0026 |
| (0.0181) | (0.0184) | (0.0161) | (0.0159) | (0.0251) | (0.0253) | |
| y75 | −0.0175 | −0.0253 | −0.0280 * | −0.0250 | −0.0261 | −0.0373 |
| (0.0166) | (0.0176) | (0.0159) | (0.0159) | (0.0233) | (0.0241) | |
| y80 | −0.0253 | −0.0290 | −0.0280 | −0.0167 | −0.0433 * | −0.0543 ** |
| (0.0165) | (0.0188) | (0.0198) | (0.0238) | (0.0222) | (0.0234) | |
| y85 | −0.0031 | −0.0013 | 0.0001 | 0.0184 | −0.0272 | −0.0345 |
| (0.0163) | (0.0218) | (0.0173) | (0.0207) | (0.0226) | (0.0272) | |
| y90 | −0.0102 | −0.0185 | −0.0340 * | −0.0255 | −0.0258 | −0.0398 |
| (0.0161) | (0.0197) | (0.0175) | (0.0191) | (0.0225) | (0.0257) | |
| y95 | −0.0009 | −0.0086 | −0.0039 | 0.0196 | −0.0339 | −0.0598 ** |
| (0.0168) | (0.0235) | (0.0197) | (0.0231) | (0.0235) | (0.0285) | |
| East Asia | 0.0312 ** | 0.0189 | 0.1073 *** | 0.0855 *** | ||
| (0.0137) | (0.0175) | (0.0165) | (0.0202) | |||
| Other | −0.1190 *** | −0.0915 *** | ||||
| Countries | (0.0093) | (0.0125) | ||||
| Constant | 0.1775 *** | 0.1487 *** | 0.1544 *** | 0.1267 *** | 0.0758 *** | 0.0855 *** |
| (0.0161) | (0.0245) | (0.0247) | (0.0306) | (0.0205) | (0.0305) | |
| N | 566 | 566 | 189 | 189 | 377 | 377 |
| Adjusted R | 0.4357 | 0.3945 | 0.4191 | 0.3848 | 0.1275 | 0.0852 |
| P-values, Yg Pvalues, | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| year dummies | 0.2800 | 0.1160 | 0.0125 | 0.0006 | 0.2261 | 0.0954 |
| Y gr Effect P-value, | 0.7203 | 1.1739 | 0.6967 | 1.4105 | 0.6177 | 0.7543 |
| Hausman | 0.0000 | 0.0037 | 0.0000 | |||
Note. The dependent variable is the national saving rate.
q: Adult survival index, Ygr: GDP growth rate, D1: young dependency rate, ?q: change in the adult survival rate, PRI: price of investment goods, yXX dummy variables for year XX, N: number of observation. “P-value, Ygr” is the p-value of F-test of the null hypothesis that the both coefficients of q·Ygr and D1·Ygr are zero. “Pvalue, year dummies” is the p-value of F-test of the null hypothesis that all the year dummies are zero. “Ygr Effect” is the partial effect of an increase in GDP growth. “P-value Hausman” is the p-value of Hausman test for the null hypothesis that economic growth rate is exogenous. Figures in parentheses are standard errors.
denotes significant at 1 % level
denotes significant at 5 % level, and
denotes significant at 10 % level.