What explains the US net income balance?

Alexandra Heath

No 223, BIS Working Papers from Bank for International Settlements

Abstract: Despite a significant deterioration in the US net foreign asset position, there has not been a corresponding deterioration in the net income balance. In fact, there has generally been a net income surplus. Two factors have been particularly important for the positive net income balance over the past 15 years or so. The first is that the United States has a positive net external equity balance and a negative net external debt balance. This contributes to a net income surplus because the income yield on equity has been higher than the income yield on debt.

Keywords: Net income balance; dark matter; income yields; foreign direct investment (search for similar items in EconPapers)
JEL-codes: F32 F41 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2007-01
New Economics Papers: this item is included in nep-acc and nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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