Public and private saving and investment

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van Wincoop, Eric; Marrinan, Jane. Public and private saving and investment. 1996
To cite or link this document: van Wincoop, Eric Marrinan, Jane
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 1996-06-01
dc.description.abstract We decompose aggregate saving and investment into its public and private components and then document a variety of ``stylized facts'' associated with saving and investment rates for a sample of 15 countries over the period 1975--1989. In order to see whether these empirical relationships are consistent with a world of perfect capital mobility we develop a multi--country model with free trade in a riskfree bond and calibrate it to the fifteen OECD countries. We pay special attential to modeling the fiscal policy rules. The model performs remarkably well in accounting for a wide variety of time series relationships. Nonetheless the model is not able to capture the cross sectional aspect of the data. In particular, the model cannot account for both the large cross country correlation between aggregate saving and investment rates and the very negative cross country relationship between the public and private saving minus investment gaps.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 172
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Public and private saving and investment
dc.type info:eu-repo/semantics/workingPaper 2014-06-03T07:13:52Z
dc.subject.keyword Finance and Accounting
dc.subject.keyword saving
dc.subject.keyword investment
dc.subject.keyword fiscal policy
dc.subject.keyword current account
dc.rights.accessRights info:eu-repo/semantics/openAccess

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