Understanding Domestic Savings in Chile

Abstract

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Firm Productivity as an Engine of Saving

“…Again, capital taxes or investment wedges are important in determining the level of the saving rate, perhaps to a larger extent than for Mexico. This is consistent with the findings of Cerda et al (2015) who argue that the large drop in tax rates on retained earnings (from close to 50 percent in 1985 to 10 percent in 1988) provided plenty of saving incentives in the years following the reform.…”

Saving Rates in Latin America: A Neoclassical Perspective

“…The tax rates that we construct point to a dramatic decline in the corporate tax rate in Chile from over 50 percent until 1986/87 to around 10% afterward. Available evidence (Hsieh and Parker, 2007;Cerda et al, 2015) confirms this strong decline of tax rates in Chile. In Colombia, on the other hand, the average tax rate increases from 3.8% to 7.9% after 1987.…”

“…6 Hsieh and Parker (2007) and Cerda et al (2015) present compelling evidence that corporate tax rates were lowered by these approximate magnitudes around 1987-88…”

Ahorro fiscal precautorio en países intensivos en recursos naturales

“…El coeficiente de la volatilidad de los ingresos por recursos naturales fluctúa entre 3 y 4%, similares a los resultados de los cuadros 1 y 2. Las columnas 4 a 7 incluyen otras variables de control que pueden determinar ahorro fiscal o la posición de deuda neta del fisco (véanse Cerda et al, 2015, y Grigoli et al, 2015. Al incluirlas, el coeficiente de volatilidad aumenta marginalmente y fluctúa entre 5 y 6%, muy similar a los resultados del cuadro 2.…”