Regional differences in personal saving rates in Spain

The aim of this article is to analyze, from an aggregate perspective, the d ifferences in personal saving rates among the Spanish regions at the NUTS H level from 1986 to 1994. In accordance with the postulates of the life cyc le hypothesis, we present the main economic determinants for personal savin g rates obtained from an aggregate personal saving model. Correcting for te mporal and spatial dependence in the empirical model, the analysis suggests the existence of a significant and negative relationship between aggregate personal saving rates and wealth, access to credit and direct tax burdens. Likewise, a nearly significant positive relationship between personal savi ng rates and per capita gross disposable personal income has been detected.