The public-private savings mirror and causality relations among private savings, investment and (twin) deficits: A full modelling 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29630.
Date of creation: 1996
Date of revision:
Publication status: Published in Journal of Policy Modeling 5.21(1999): pp. 579-605
savings; investment; current account; macro-modelling; twin deficits;
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, 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 - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
- H6 - Public Economics - - National Budget, Deficit, and Debt
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