Thus we use data from Bennett Schmidt Hebbel and Soto 1999 and complement it

Thus we use data from bennett schmidt hebbel and soto

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Thus we use data from Bennett, Schmidt-Hebbel and Soto (1999) and complement it with data since 1998 data published by the Central Bank of Chile. 4.1.2 Public Firms’ Savings According to Dipres, Chile had 33 public firms in 2013. Banco Estado is the single firm in the financial sector. Codelco, which produces 32 percent of Chilean copper production, accounted for 85 percent of total profits of public companies, while BancoEstado and ENAP accounted for 11.8 percent and 6.5 percent of total profits, respectively. The remaining public companies have negative profits, accounting for -0.04 percent of GDP. To obtain savings series from public firms, we used data from Dipres’ Annual Report on Public Finances (Spanish acronym: Informe de Estadísticas de las Finanzas Públicas). The report provided data related to before-tax profits 𝜋 𝑡 𝑃𝑃 , depreciation 𝐷𝐷𝑝 𝑡 𝑃𝑃 , transfers from the central government to public firms ( 𝑇𝑟 𝑡 𝐺 , 𝑃𝑃 ) , and transfers from public firms to the central government ( 𝑇𝑟 𝑡 𝑃𝑃 , 𝐺 ) . We were able to obtain data back to 1994 and we constructed public firm savings as non-distributed after tax profits plus depreciation and transfers from the government minus transfers to the government. Thus, public firms’ savings is calculated as in: 𝑆 𝑡 𝑃𝑃 = 𝜋 𝑡 𝑃𝑃 + 𝐷𝐷𝑝 𝑡 𝑃𝑃 + 𝑇𝑟 𝑡 𝐺 , 𝑃𝑃 − 𝑇𝑟 𝑡 𝑃𝑃 , 𝐺 (12) From 1960 to 1993, we used the data from Bennett, Schmidt-Hebbel and Soto (1999). That data followed similar methodology. 4.1.2 Central Bank Savings To construct Central Bank savings we obtained data from 1997 to 2013 from the Annual Financial Statements of the Central Bank. The data represent profits 𝜋 t CB and depreciation 𝐷𝐷𝑝 𝑡 𝐶𝐶 . In addition, we obtained data on capital contributions provided by the Ministry of Finance to the Central Bank, 𝑇𝑟 𝑡 𝐺 , 𝐶𝐶 , which were authorized by Law 20,128, approved in 2006. That legislation allowed a capital contribution up to 0.5 percent per year for five years. Those capital contributions effectively occurred in 2006, 2007, 2008 and 2009. Using that information, we constructed Central Bank savings according to: (13)
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15 The savings series was completed with data from Bennett, Schmidt-Hebbel and Soto (1999) from 1960 to 1997. 4.2 Corporate Savings Corporate savings are basically calculated as non-distributed after-tax profits plus depreciation minus the profits of foreign companies: Corporate Savings = After-tax corporate profits – Distributed dividends + Private firms depreciation – Foreign firms profits. To estimate after-tax corporate profits we start by obtaining data from publicly traded private firms (Spanish acronym: Sociedades Anónimas Abiertas, SAA). We have different sources of information on SAA. First, we were able to obtain the public Standardized Quarterly Financial Reports (Spanish acronym: FECUs) of those firms. These are financial statements sent
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  • Sagar Arora
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