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. These decisions can be decomposed into a portfolio rebalancing and a portfolio growth component. This paper provides … empirical evidence of the importance of portfolio rebalancing for the dynamics of the current account. The authors evaluate the … predictions of a partial-equilibrium model of the current account with dynamic portfolio choices, in which portfolio rebalancing …
Persistent link: https://www.econbiz.de/10011394155
"China in the past few years has emerged as a net foreign creditor on the international scene with net foreign assets slightly greater than zero percent of wealth. This is surprising given that China is a relatively poor country with a capital-labor ratio about one-fifth the world average and...
Persistent link: https://www.econbiz.de/10010522399
"Over the past decade the United States has experienced widening current account deficits and a steady deterioration of its net foreign asset position. During the second half of the 1990s, this deterioration was fueled by foreign investment in a booming U.S. stock market. During the first half...
Persistent link: https://www.econbiz.de/10010522528
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The gains from the transition in post-communist Russia were captured by the new managerial class, which won rents from the state in the form of privatized enterprises, state subsidies, credits, and opportunities for tax evasion. Those rents reduced state revenues that could have supported social...
Persistent link: https://www.econbiz.de/10010524335