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The stability of the labor share is a key foundation in macroeconomic models. We document, however, that the global labor share has significantly declined over the last 30 years. This decline was associated with a significant increase in corporate saving, generally the largest component of...
Persistent link: https://www.econbiz.de/10013105000
supply of corporate savings increased by over 20 percentage points as a share of total global savings. These trends were … neoclassical model imply that the labor share fluctuates and the sectoral composition of savings affects macroeconomic allocations … of the observed changes in labor shares and corporate savings. The non-unitary elasticity of substitution between capital …
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We analyse global and euro area imbalances by focusing on China and Germany as large surplus and creditor countries. In the 2000s, domestic reforms in both countries expanded the effective labour force, restrained wages, shifted income towards profits and increased corporate saving. As a result,...
Persistent link: https://www.econbiz.de/10013059563
This paper proposes that globalization can affect household saving in the long run in a number of ways. Social … from Veblen's conspicuous consumption theory, saving may also decrease when globalization leads to greater population …, financial globalization reduces credit constraints and allows households to save less. Using cross-country data from the United …
Persistent link: https://www.econbiz.de/10012933726
The global imbalances of the 2000s and the recent global financial crisis are intimately connected. Both originate in the combination of economic policies adopted by the two key economies, the US and China. Global financial markets served as a transmission belt, both during the boom as during...
Persistent link: https://www.econbiz.de/10013144334
within the Sub-Saharan African (SSA) economies. With a re-specified inter-temporal consumption framework, the savings … and techniques were employed. The long-run correlation of savings and investments were investigated with the use of robust … economies are significantly and substantially financed by global savings. This implies that global integration has increased in …
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