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Full-Text Articles in Social and Behavioral Sciences
Current Account Balances, Financial Development And Institutions: Assaying The World “Saving Glut”, Menzie David Chinn, Hiro Ito
Current Account Balances, Financial Development And Institutions: Assaying The World “Saving Glut”, Menzie David Chinn, Hiro Ito
Economics Faculty Publications and Presentations
We critically assess several of the key assertions underlying the global saving glut hypothesis. First, we investigate whether the behavior of the U.S. current account behavior is anomalous in light of previous industrial country experience. Second, we determine whether East Asian current account balances are predictable using standard macroeconomic variables, augmented with institutional factors. Finally, we investigate whether higher levels of financial development in key East Asian economies would result in smaller current account surpluses. We find that a one percentage-point increase in the budget balance would increase the current account balance by 0.10 to 0.49 percentage-points for industrialized countries, …
An Agent-Based Model Of Trade With Distance-Based Transaction Cost, Kumar Venkat, Wayne W. Wakeland
An Agent-Based Model Of Trade With Distance-Based Transaction Cost, Kumar Venkat, Wayne W. Wakeland
Systems Science Faculty Publications and Presentations
This paper describes an application of agent-based modeling to investigate the effect of a distance-based transaction cost on trade. Long-distance trade is rapidly increasing, but may ultimately be constrained by our ability to move material goods between sellers and buyers. Unlike information exchange, trade in material goods is dependent on the price of oil and vulnerable to future scarcities of oil. In addition, there are growing concerns about greenhouse gas emissions from long-distance transportation. Our purpose in this study is to take the first step in understanding the impact of a distance constraint on free global trade using a simple …