current account imbalances and possibly to the recent global financial crisis. This paper proposes a theory of excess savings …Large savings and current account surpluses by China and other countries are said to be a contributor to the global … show conditions under which an intensified competition in the marriage market can induce men to raise their savings rate …

Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of … fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …

savings rate on the investment rate, as performed in the literature, are shown to be incorrect tests of the hypothesis of … current account and savings equations. Empirical tests of the model for a sample of 18 OECD countries present good evidence …

account and the intertemporal savings and investment choices of its households, firms, and governments. In this paper, we … assess the empirical relevance of the permanent income theory of household saving, a key building block of recent theoretical … models of the current account. Using the econometric approach of Campbell (1987), we are able to reject the theory on …

dynamics are documented here to be specific to the U.S. and Canada. In other developed economies residential investment is … mortgages and interest rate dynamics aligns the theory more closely with U.S. observations. Longer time to build in housing …

that the represenative consumer changes savings in response to temporary deviations of income from its stochastic trend …