This paper contrasts the orthodox approach with an alternative view on finance, saving, deficits, and liquidity. The ….S. current account deficit that supplies the net dollar saving to the rest of the world, and the federal government budget … deficit that supplies the net dollar saving to the nongovernment sector. Further, saving is never a source of finance; rather …

that need attention: (i) investment functions (where popular specifications lack behavioral and empirical support), (ii …

The 'saving for a rainy day' hypothesis implies that households' saving decisions reflect that they can (rationally … the period 1980q1-2011q4. That is, income is more often found to predict consumption and saving than the converse. Our … modus operandi is to investigate the 'saving for a rainy day' hypothesis by testing (weak) exogeneity of income and …

The temporal interdependence between saving and output has been in focus in a number of recent empirical studies …. Results from these studies have compelled some authors to question the traditional notion of a causal chain where saving leads …. Saving and GDP are estimated in bivariate vector autoregressive or vector error-correction models for Sweden, UK, and USA …

in Gourinchas and Jeanne (2013) to compute regional investment and saving wedges. By relating those frictions with TFP … catch-up parameters, we find an investment and a saving puzzle: regions that caught up relative to the rest of China seem to … have lower investment rate (higher investment tax) and higher saving (lower saving tax) relative to the prediction of the …

In this paper we investigate the long-run and short-run relationship between housing investment and economic growth in … clear support of a stable long-run relationship between housing investment, non-housing investment and GDP in China. We then … estimate the long-run elasticity of GDP with respect to housing investment for the whole country as well as three sub regions …