BPEA | 1978 No. 3

The Measurement and Determination of Loanable-Funds Saving

E. Philip Howrey and
E. Philip Howrey University of Michigan
Saul H. Hymans
Saul H. Hymans University of Michigan
John B. Shoven,
Shoven headshot
John B. Shoven Charles R. Schwab Professor of Economics - Stanford University, and NBER
Dr. Martin Feldstein, and
Dr. Martin Feldstein President and CEO, National Bureau of Economic Research
Michael J Boskin

1978, No. 3

WHILE there may be many reasons to be concerned about what determines the flow of saving in the U.S. economy, it is the role of saving as the supply side in the process of capital accumulation that seems to lie at the heart of the renewed interest in saving behavior in recent literature. That same view of saving is the focus of our attention and guides the choices we make in the empirical analysis presented here. Our major objective is to investigate the proposition that saving—in the sense of the flow of resources available for capital formation, or “loanable funds”—is determined in part by the rate of interest.