Showing 1 - 10 of 296
This paper examines aggregate savings in a general equilibrium model where infinitely lived households face volatile … when income is constant. This additional capital accumulation has sometimes been interpreted as precautionary savings, but … I demonstrate that it is mostly generated by permanent-income motives. -- equilibrium interest rate ; aggregate savings …
Persistent link: https://www.econbiz.de/10002679474
Persistent link: https://www.econbiz.de/10002405737
Persistent link: https://www.econbiz.de/10000936516
We use the neoclassical growth framework to model international capital flows in an economy with exogenous demographic change. We compare model implications and actual current account data and find that the model explains a small but significant fraction of capital flows between OECD countries,...
Persistent link: https://www.econbiz.de/10001801345
Persistent link: https://www.econbiz.de/10000897134
Persistent link: https://www.econbiz.de/10000902160
Persistent link: https://www.econbiz.de/10000961609
In this paper we show the consequences of applying a panel unit root test when testing for a purchasing power parity relationship. The distribution of the tests investigated, including the IPS test of Im et al (1997), are influenced by a common stochastic trend which is usually not accounted...
Persistent link: https://www.econbiz.de/10001600044
Persistent link: https://www.econbiz.de/10000920355
Persistent link: https://www.econbiz.de/10000920367