This paper is the first application of the singular value decomposition in general equilibrium theory. Every technology matrix can be decomposed into three parts: (1) a definition of composite commodities; (2) a definition of composite factors; and (3) a simple map of composite factor prices...

Extending the theory of generational accounts, the author shows that the conventional current account is not related to the real effects of a country's fiscal policy. For any international array of fiscal policies, a country can implement its own policy so that the conventional government and...

Since the conventional current account uses cash flow accounting, it is potentially devoid of economic meaning. Assessing foreign assets at market values and including expected transfers from abroad, this paper reports two measures of the external surplus that are grounded in economic theory....