Save now, prosper later
AbstractThis paper uses NZIER’s dynamic Computable General Equilibrium (CGE) model of the New Zealand economy to conduct a preliminary investigation into how an increase in New Zealand’s national savings would affect New Zealand’s GDP and living standards. We do not specify how this increase might take place. We find that increased saving would reduce our overseas debt and thus cut our debt servicingrepayments. It is likely that the risk premium on borrowing costs would also fall under such a scenario. This would help boost investment.
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Bibliographic InfoPaper provided by New Zealand Institute of Economic Research in its series NZIER Working Paper with number 2010/2.
Length: 18 pages
Date of creation: 12 Nov 2010
Date of revision:
cge modelling; savings; New Zealand;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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