The Public-Private Savings Mirror and Causality Relations Among Private Savings, Investment, and (twin) Deficits: A Full Modeling Approach
AbstractRelations between national public and private savings, domestic investment, and the current account are analyzed with the Global Econometric Model (National Institute, London). Simulation results obtained with this full modeling approach for the US, Japan, Germany and the UK are compared with estimation results from partial modeling approached adopted in the literature. The results from the two approaches are rather different. The simulation results indicate that private savings largely offset public savings (and vice versa) in the short run. In contrast with findings in partial models, a smaller effect of aggregate savings on investment is found and government deficits tend to increase current account imbalances.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 21 (1999)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/locate/inca/505735
Other versions of this item:
- Peeters, Marga, 1996. "The public-private savings mirror and causality relations among private savings, investment and (twin) deficits: A full modelling approach," MPRA Paper 29630, University Library of Munich, Germany.
- Peeters, Marga, 1999. "The public-private savings mirror and causality relations among private savings, investment and (twin) deficits: A full modeling approach," MPRA Paper 28715, University Library of Munich, Germany.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- H6 - Public Economics - - National Budget, Deficit, and Debt
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