The public-private savings mirror and causality relations among private savings, investment and (twin) deficits: A full modeling approach

Marga Peeters

MPRA Paper from University Library of Munich, Germany

Abstract: Relations between national public and private savings, domestic investment, and the current account are analyzed with the Global Econometric Model (National Institute, London). Simulation results obtained with this full modeling approach for the US, Japan, Germany and the UK are compared with estimation results from the partial modeling approached adopted in the literature. The results from the two approaches are rather different. The simulation results indicate that private savings largely offset public savings (and vice versa) in the short run. In contrast with findings in partial models, a smaller effect of aggregate savings on investment is found and government deficits tend to increase current account imbalances.

Keywords: savings; investment; current account; twin deficits; public finance; macroeconometric modeling (search for similar items in EconPapers)
JEL-codes: C5 E2 F32 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Public-Private Savings Mirror and Causality Relations Among Private Savings, Investment, and (twin) Deficits: A Full Modeling Approach (1999)
Working Paper: The public-private savings mirror and causality relations among private savings, investment and (twin) deficits: A full modelling approach (1996)
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