The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States

Andrew Atkeson, Jonathan Heathcote and Fabrizio Perri

No 29771, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The U.S. net foreign asset position has declined sharply since 2007 and is currently negative 65 percent of U.S. GDP. This deterioration primarily reflects a U.S.-specific rise in corporate asset values that has inflated the value of U.S. equity liabilities to the rest of the world. To interpret these trends we develop an international macro finance model of flows, stocks, asset valuations, the current account, and the net foreign asset position. We find that the welfare impact of rising asset values for a representative U.S. household has been quite negative given extensive foreign ownership of U.S. corporate equity.

JEL-codes: F30 F40 (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-dge, nep-fdg, nep-ifn and nep-opm
Note: EFG IFM
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Citations: View citations in EconPapers (11)

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Working Paper: The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States (2022)
Working Paper: The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States (2022)
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