This paper examines the impact of demographic factors on saving, investment, and external balances. We derive a number …-structural equations give much more plausible estimation results for saving and investment than conventional specification. …

. While neoclassical growth theory typically assumes full employment – with no effect of investment on unemployment – we find …We estimate the relationship between investment and unemployment over the time period 1960-2015 in 20 OECD countries …: when investment fell, unemployment increased. When the time period is broken down into two sub-periods to take account of …

of adjustment arising from installation costs of investment. This structure implies that the current account balance …

distortions. I document major trends in aggregate savings, investment, trade, and net foreign asset positions in China, and …. In 2008, China's national savings rate soared to over 53 percent of its GDP, whereas its current account surplus exceeded …

, though cannot equally well capture differences in the investment ratios. The conclusion that we draw is that consumption …