Jin, Keyu 
ORCID: 0000-0002-0139-799X, Guibaud, Stéphane and Coeurdacier, Nicolas
(2011)
Credit constraints and growth in a global economy.
Finance seminar series.
Department of Economics, London School of Economics and Political Science, London, UK.
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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://personal.lse.ac.uk/jink/credit.pdf |
| Additional Information: | © 2011 INSEAD |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| 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 |
| Date Deposited: | 20 Apr 2011 12:01 |
| Last Modified: | 11 Dec 2024 19:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/35706 |
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