Investigating Private and Public Savings-Investment Gaps in EC Countries

Fernando Carlos Ballabriga, Juan Dolado and José Viñals

No 607, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper uses cointegration techniques to assess the extent to which the behaviour of private- and public-sector savings and investment and those of the nation as a whole have been consistent with long-term solvency over the last three decades. In addition, an attempt is made to analyse whether excessive budget deficits might have undermined the nation's long-run external solvency. We find evidence that a number of countries violate both domestic intertemporal budget constraints, but nevertheless satisfy the nation's budget constraint. In most cases this has occurred because changes in government deficits have been offset by changes in private savings and investment and by the use of capital controls.

Keywords: Cointegration; Intertemporal Budget Constraint; Solvency (search for similar items in EconPapers)
Date: 1991-12
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=607 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Investigating Private and Public Saving-Investment Gaps in EC Countries (1991)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:607

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=607

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().