incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in … savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using …

relationship between total regional saving and investment is significantly negative in Canada and the United Kingdom, in contrast … is negative in Canada which suggests that capital is mobile for individuals. The relationship between retained earnings … and private investment is significantly positive in the U.K. and Canada suggesting capital immobility for firms but a test …