This paper tests several hypotheses about the responsiveness of household saving to the real interest rate. It tests how the interest responsiveness in a country depends on certain common macroeconomic and demographic variables. These include per-capita income, the income distribution, the pervasiveness of borrowing constraints, the degree of financial depth, and demographic characteristics. The rationale for considering these variables is provided in the context of a theoretical model of household saving behavior, which then leads to the estimation of a structural equation for household saving
