Cookies?
Library Header Image
LSE Research Online LSE Library Services

Credit constraints and growth in a global economy

Jin, Keyu, Guibaud, Stéphane and Coeurdacier, Nicolas (2013) Credit constraints and growth in a global economy. The London School of Economics and Political Science, London, UK.

[img]
Preview
PDF - Published Version
Download (1110Kb) | Preview

Abstract

We show that in an open-economy OLG model, the interaction between growth differentials and household credit constraints, more severe in fast-growing countries, can explain three prominent global trends: a divergence in private saving rates between advanced and emerging economies, large net capital outflows from the latter, and a sustained decline in the world interest rate. Micro-level evidence on the evolution of age-saving profiles in the U.S. and China corroborates our mechanism. Quantitatively, our model explains about 40 percent of the divergence in aggregate saving rates, and a significant portion of the variations in age-saving profiles across countries and over time

Item Type: Monograph (Working Paper)
Official URL: http://www.lse.ac.uk/
Additional Information: © 2013 The Authors
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
Journal of Economic Literature Classification System: F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
F - International Economics > F3 - International Finance > F32 - Current Account Adjustment; Short-Term Capital Movements
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
Sets: Departments > Economics
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 11 Nov 2013 15:05
URL: http://eprints.lse.ac.uk/54261/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only

Downloads

Downloads per month over past year

View more statistics