Cookies?
Library Header Image
LSE Research Online LSE Library Services

Credit constraints and growth in a global economy

Coeurdacier, Nicolas, Guibaud, Stéphane and Jin, Keyu (2015) Credit constraints and growth in a global economy. American Economic Review, 105 (9). pp. 2838-2881. ISSN 0002-8282

[img]
Preview
PDF - Accepted Version
Download (988kB) | Preview

Identification Number: 10.1257/aer.20130549

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 a third 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: Article
Official URL: https://www.aeaweb.org/index.php
Additional Information: © 2015 The American Economic Review
Divisions: Economics
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: 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
Date Deposited: 19 May 2015 14:55
Last Modified: 20 May 2019 01:48
Funders: ANR (Chaire d’Excellence INTPORT), ERC (Starting Grant INFINHET), Banque de France
URI: http://eprints.lse.ac.uk/id/eprint/62016

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics