ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Economic Reform and Rate of Saving

EPW Research Foundation This paper points out that the existing estimation procedures are likely to overestimate household saving and, in turn, overall domestic saving. The possible sources of overestimation examined here are portfolio investment by Flls and private transfers from abroad. The conclusion about overestimation of the rate of saving may be reinforced by other considerations such as year-end bunching of financial assets, apportionment of funds mobilised by UTI and other mutual funds, public deposits and company shareholdings of non-banking financial companies, treatment of household security deposits and adjustment of paid-up capital of companies for global security deposits.

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