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The optimal provision of loan guarantees or deposit insurance is examined in the context of an overlapping generations model. It is demonstrated that even in the face of a market imperfection that precludes diversification of the private sector’s loan portfolio to eliminate risk, full...
Persistent link: https://www.econbiz.de/10014395814
This paper analyzes reasons for the high post-war correlations of saving and investment, both across countries and over …
Persistent link: https://www.econbiz.de/10014396226
Tax or debt financing of a given rate of government expenditures would, according to the now well-known Ricardian Equivalence proposition, have equivalent effects on aggregate demand. Among the reasons for a deviation from the equivalence is the possibility that the government and the private...
Persistent link: https://www.econbiz.de/10014396483
for the possible heterogeneity of savings behavior across countries and the inclusion of dynamics. It shows that … neglecting heterogeneity and dynamics can lead to misleading inferences about the key determinants of savings behavior. The …This paper examines the extent to which conclusions of cross-country studies of private savings are robust to allowing …
Persistent link: https://www.econbiz.de/10014400163
A common proposal designed to deal with the developing countries’ debt problem is that there be set up some kind of “international debt facility” which would buy up debt at a discount and then write down its contractual value, hence providing debt relief. There are three main parties to...
Persistent link: https://www.econbiz.de/10014396274
Persistent link: https://www.econbiz.de/10009510794
This Selected Issues paper on Turkey reviews a decline in private saving and adoption of a fiscal rule. As economic … confidence has improved, capital inflows have surged while private saving has fallen. Together, these developments have produced …
Persistent link: https://www.econbiz.de/10014405934
This paper explores how tax policy affects the level and allocation of national savings in the United States. It argues … that the effect of taxes on the overall private saving level is relatively small and uncertain and that raising public … saving is the most direct and efficient way to raise national saving. However, the tax system has a powerful impact on the …
Persistent link: https://www.econbiz.de/10014395849
A firm theoretical basis for the empirical relationship between dependency rates and savings behavior in developing …, and on the savings responsiveness to changes in the real interest rate …
Persistent link: https://www.econbiz.de/10014395881
This paper examines the extent of international financial integration, and its consequences for the current account. The evidence indicates that financial liberalization in the 1970s and 1980s has resulted in a substantial movement towards closer integration of world capital markets. By reducing...
Persistent link: https://www.econbiz.de/10014395900