Empirical Analysis of Savings Behavior in European Countries: New Insights‪.‬

Abstract The primary aim of this paper is to carry out an analysis of the savings behavior by separately analyzing its public and private components and the private savings components as well. Particularly, the authors will devote attention to appraise the extent to which the substitution effect between those magnitudes have held for the last few decades in the European context. The authors will apply unit root tests and have chosen the following: Augmented Dickey-Fuller, Phillips-Perron, and Kwiatkowski-Phillips-Schmidt-Shin tests. It's expected that empirical results will shed light for policymakers aimed at being capable of increasing aggregate private savings which, in turn, will improve the country's economic growth. (JEL E20, 022, C23)