This paper reviews analytically and empirically the links between income distribution and aggregate saving. Consumption theory brings out a number of direct channels through which income inequality can affect overall household saving — positively in most cases. However, recent...

This paper reviews analytically and empirically the links between income distribution and aggregate saving. Consumption theory brings out a number of direct channels through which income inequality can affect overall household saving--positively in most cases. However, recent political-economy...

No evidence is found to support the notion that income inequality affects aggregate saving across countries-neither in developing nor in industrial countries.Schmidt-Hebbel and Serven empirically review and analyze the link between income distribution and aggregate savings.Recent research has...