The aim of this paper is to analyze, from an aggregate perspective, the differences that exist in personal saving rates among the 17 Spanish Autonomons Regions (CC.AA.). To that end, we present the main economic determinants for personal saving rates obtained from an aggregate personal saving model based on the postulates of the Life Cycle Hypothesis, and from panel data on these CC.AA. during the period 1985-92. Although evidence shows the possible existence of specific factors that partially account for personal savings in each region, the proposed saving model is nevertheless abie to explain a high percentage of cross-regional variance. The empirical analysis of the model suggests that there is a significant and positive relationship between the aggregate gross personal saving rate and the per capita gross disposable personal income in the Spanish economy. Equally, it indicates that the growth of disposable gross personal income has a significant positive influence on the aggregate personal saving rate. Similarly, we find that expected labour income, the amount of availabie credit, direct tax burdens and female labour force participation have a significant and negative impact on the personal saving rate.

Keywords: personal saving, regional economy, life cycle hypothesis, aggregate models, panel data.