Citation

Discussion Paper Details

Please find the details for DP607 in an easy to copy and paste format below:

Full Details | Bibliographic Reference

Full Details

Title: Investigating Private and Public Savings-Investment Gaps in EC Countries

Author(s): Fernando Carlos Ballabriga, Juan J. Dolado and Jos� Vi�als

Publication Date: December 1991

Keyword(s): Cointegration, Intertemporal Budget Constraint and Solvency

Programme Area(s): International Macroeconomics

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=607

Bibliographic Reference

Ballabriga, F, Dolado, J and Vi�als, J. 1991. 'Investigating Private and Public Savings-Investment Gaps in EC Countries'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=607