average higher volatility of output growth (1) accumulated higher external assets in the long-run and (2) experienced more … higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … and a precautionary savings motive will lead to procyclical capital outflows at business cycle frequency and a higher long …

average higher volatility of output growth (1) accumulated higher external assets in the long-run and (2) experienced more … higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … and a precautionary savings motive will lead to procyclical capital out ows at business cycle frequency and a higher long …

In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …

In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …

average higher volatility of output growth: (1) accumulated higher external assets in the long-run and (2) experienced more … increases households' precautionary savings. In the model, the combination of income risk and the precautionary savings motive …