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 the 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28715.
Date of creation: 1999
Date of revision:
savings; investment; current account; twin deficits; public finance; macroeconometric modeling;
Other versions of this item:
- Peeters, Marga, 1999. "The Public-Private Savings Mirror and Causality Relations Among Private Savings, Investment, and (twin) Deficits: A Full Modeling Approach," Journal of Policy Modeling, Elsevier, vol. 21(5), pages 579-605, September.
- 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.
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
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