Capital flows among the g-7 nations
Subtitle: a demographic perspective
By: Michael Feroli.
Series: Finance and economics discussion series ;; 2003-54; Finance and economics discussion series (Online) ;; 2003-54.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Capital movements.; Balance of payments.; Population.
Description: "The standard life-cycle model of consumption behavior predicts that a household's age will influence its saving behavior.  Moreover, simple national accounting identities reveal that a country's current account balance reflects its savings-investment imbalance.  Thus, differences in national age-profiles should affect the current account.  To test this theory's plausibility and significance, I simulate a multi-region overlapping generations model that is calibrated to match the demographic differences among the major industrialized countries over the past 50 years.  In the model, it is found that these differences can explain some of the observed long-term capital movements in the G-7.  In particular, the model does a good job of predicting the size and timing of American current account deficits as well as Japanese current account surpluses"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/21/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.