A Sexually Unbalanced Model of Current Account Imbalances
AbstractLarge savings and current account surpluses by China and other countries are said to be a contributor to the global current account imbalances and possibly to the recent global financial crisis. This paper proposes a theory of excess savings based on a major, albeit insufficiently recognized by macroeconomists, transformation in many of these societies, namely, a steady increase in the surplus of men relative to women. We construct an OLG model with two sexes and a desire to marry. We show conditions under which an intensified competition in the marriage market can induce men to raise their savings rate, and produce a rise in the aggregate savings and current account surplus. This effect is economically significant if the biological desire to have a partner of the opposite sex is strong. A calibration of the model suggests that this factor could generate economically significant current account responses, or more than 1/2 of the actual current account imbalances observed in the data.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16000.
Date of creation: May 2010
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- F3 - International Economics - - International Finance
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ju, Jiandong & Shi , Kang & Wei , Shang-Jin, 2013. "Trade reforms and current account imbalances," BOFIT Discussion Papers 25/2013, Bank of Finland, Institute for Economies in Transition.
- Cheung, Yin-Wong & Chinn, Menzie D. & Qian, Xing Wang, 2012.
"Are Chinese Trade Flows Different?,"
BOFIT Discussion Papers
14/2012, Bank of Finland, Institute for Economies in Transition.
- Samuel Cudré, 2014. "Capital’s long march west: saving and investment frictions in Chinese regions," ECON - Working Papers 161, Department of Economics - University of Zurich.
- Samuel Cudré & Mathias Hoffmann, 2014. "A provincial view of global imbalances: regional capital flows in China," ECON - Working Papers 162, Department of Economics - University of Zurich.
- Alger, Ingela & Cox, Donald, 2012.
"The Evolution of Altruistic Preferences: Mothers versus Fathers,"
LERNA Working Papers
12.30.387, LERNA, University of Toulouse, revised May 2013.
- Ingela Alger & Donald Cox, 2013. "The evolution of altruistic preferences: mothers versus fathers," Review of Economics of the Household, Springer, vol. 11(3), pages 421-446, September.
- Alger, Ingela & Cox, Donald, 2012. "The Evolution of Altruistic Preferences: Mothers versus Fathers," IAST Working Papers 12-02, Institute for Advanced Study in Toulouse (IAST), revised May 2013.
- Alger, Ingela & Cox, Donald, 2012. "The Evolution of Altruistic Preferences: Mothers versus Fathers," IDEI Working Papers 758, Institut d'Économie Industrielle (IDEI), Toulouse, revised May 2013.
- Alger, Ingela & Cox, Donald, 2012. "The Evolution of Altruistic Preferences: Mothers versus Fathers," TSE Working Papers 12-369, Toulouse School of Economics (TSE), revised May 2013.
- Philip Levy, 2011.
"The United States and the PRC : Macroeconomic Imbalances and Economic Diplomacy,"
Macroeconomics Working Papers
23208, East Asian Bureau of Economic Research.
- Levy, Philip, 2011. "The United States and the PRC: Macroeconomic Imbalances and Economic Diplomacy," ADBI Working Papers 328, Asian Development Bank Institute.
- Philip Levy, 2011. "The United States and the PRC : Macroeconomic Imbalances and Economic Diplomacy," Governance Working Papers 23208, East Asian Bureau of Economic Research.
- Stiglitz Joseph E & Greenwald Bruce, 2010. "Towards A New Global Reserve System," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-26, December.
- Shang-Jin Wei & Xiaobo Zhang, 2011. "Sex Ratios, Entrepreneurship, and Economic Growth in the People’s Republic of China," NBER Working Papers 16800, National Bureau of Economic Research, Inc.
- Agenor, Pierre-Richard & Canuto, Otaviano & da Silva, Luiz Pereira, 2010. "On gender and growth : the role of intergenerational health externalities and women's occupational constraints," Policy Research Working Paper Series 5492, The World Bank.
- Ito, Hiro & Volz, Ulrich, 2012. "The People’s Republic of China and Global Imbalances from a View of Sectorial Reforms," ADBI Working Papers 393, Asian Development Bank Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.