Kiel Working Papers, Kiel Institute for World Economics
No 963:
Stock Market Wealth, Private Saving, and the Current Account in the United States: Should We Worry?
Hubert Strauß
Abstract: The paper investigates by means of cointegration analysis
whether the recently observed low levels of private saving and the current
account balance in the United States are worrisome in the sense that they
cannot be sufficiently explained by determinants which performed well in
the past. Stock market wealth of private households is taken into account
and turns out to be the main dampening factor of private saving during the
nineties. Unlike the current account deficit, which reflects low saving,
higher growth with respect to the rest of the world and the high dollar,
private saving is much lower than predicted by the model in 1999.
Keywords: Private Saving, Current Account Balance, Stock Market Wealth, Cointegration; (follow links to similar papers)
JEL-Codes: E21; E27; F32; H31; (follow links to similar papers)
36 pages, December 1999
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kap963.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
