Is business saving really none of our business?

Autores
Bebczuk, Ricardo Néstor; Cavallo, Eduardo
Año de publicación
2016
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
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.
Fil: Bebczuk, Ricardo Néstor. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Cavallo, Eduardo. Inter-American Development Bank; Estados Unidos
Materia
Business Saving
Corporate Finance
Corporate Veil
Domestic Saving
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/55534

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spelling Is business saving really none of our business?Bebczuk, Ricardo NéstorCavallo, EduardoBusiness SavingCorporate FinanceCorporate VeilDomestic Savinghttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This 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.Fil: Bebczuk, Ricardo Néstor. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaFil: Cavallo, Eduardo. Inter-American Development Bank; Estados UnidosTaylor & Francis2016-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/55534Bebczuk, Ricardo Néstor; Cavallo, Eduardo; Is business saving really none of our business?; Taylor & Francis; Applied Economics; 48; 24; 1-2016; 2266-22840003-68461466-4283CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.tandfonline.com/doi/abs/10.1080/00036846.2015.1117050info:eu-repo/semantics/altIdentifier/doi/10.1080/00036846.2015.1117050info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-03T09:47:17Zoai:ri.conicet.gov.ar:11336/55534instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-03 09:47:17.434CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Is business saving really none of our business?
title Is business saving really none of our business?
spellingShingle Is business saving really none of our business?
Bebczuk, Ricardo Néstor
Business Saving
Corporate Finance
Corporate Veil
Domestic Saving
title_short Is business saving really none of our business?
title_full Is business saving really none of our business?
title_fullStr Is business saving really none of our business?
title_full_unstemmed Is business saving really none of our business?
title_sort Is business saving really none of our business?
dc.creator.none.fl_str_mv Bebczuk, Ricardo Néstor
Cavallo, Eduardo
author Bebczuk, Ricardo Néstor
author_facet Bebczuk, Ricardo Néstor
Cavallo, Eduardo
author_role author
author2 Cavallo, Eduardo
author2_role author
dc.subject.none.fl_str_mv Business Saving
Corporate Finance
Corporate Veil
Domestic Saving
topic Business Saving
Corporate Finance
Corporate Veil
Domestic Saving
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv 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.
Fil: Bebczuk, Ricardo Néstor. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Cavallo, Eduardo. Inter-American Development Bank; Estados Unidos
description 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.
publishDate 2016
dc.date.none.fl_str_mv 2016-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/55534
Bebczuk, Ricardo Néstor; Cavallo, Eduardo; Is business saving really none of our business?; Taylor & Francis; Applied Economics; 48; 24; 1-2016; 2266-2284
0003-6846
1466-4283
CONICET Digital
CONICET
url http://hdl.handle.net/11336/55534
identifier_str_mv Bebczuk, Ricardo Néstor; Cavallo, Eduardo; Is business saving really none of our business?; Taylor & Francis; Applied Economics; 48; 24; 1-2016; 2266-2284
0003-6846
1466-4283
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.tandfonline.com/doi/abs/10.1080/00036846.2015.1117050
info:eu-repo/semantics/altIdentifier/doi/10.1080/00036846.2015.1117050
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Taylor & Francis
publisher.none.fl_str_mv Taylor & Francis
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.13397