Demographic changes, saving, and current account: An analysis based on a panel VAR model

Soyoung Kim; Jong Wha Lee

doi:10.1016/j.japwor.2006.11.005

Demographic changes, saving, and current account: An analysis based on a panel VAR model

Soyoung Kim, Jong Wha Lee

Department of Economics

Research output: Contribution to journal › Article › peer-review

28 Citations (Scopus)

Abstract

This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.

Original language	English
Pages (from-to)	236-256
Number of pages	21
Journal	Japan and the World Economy
Volume	20
Issue number	2
DOIs	https://doi.org/10.1016/j.japwor.2006.11.005
Publication status	Published - 2008 Mar

Keywords

Current account
Demographic changes
Panel VAR
Saving

ASJC Scopus subject areas

Finance
Economics and Econometrics
Political Science and International Relations

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10.1016/j.japwor.2006.11.005

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title = "Demographic changes, saving, and current account: An analysis based on a panel VAR model",

abstract = "This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.",

keywords = "Current account, Demographic changes, Panel VAR, Saving",

author = "Soyoung Kim and Lee, {Jong Wha}",

note = "Funding Information: We are grateful to Warwick McKibbin, Kwanho Shin, an anonymous referee, and seminar participants at the Australian National University and Korea University for helpful discussions and Jong Duk Kim for valuable research assistance. This research was a part of the Research Project on Aging in East Asia at Hosei Institute of Aging, Hosei University supported by the Ministry of Education, Japan.",

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AU - Lee, Jong Wha

N1 - Funding Information: We are grateful to Warwick McKibbin, Kwanho Shin, an anonymous referee, and seminar participants at the Australian National University and Korea University for helpful discussions and Jong Duk Kim for valuable research assistance. This research was a part of the Research Project on Aging in East Asia at Hosei Institute of Aging, Hosei University supported by the Ministry of Education, Japan.

PY - 2008/3

Y1 - 2008/3

N2 - This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.

AB - This paper empirically investigates the macroeconomic effects of demographic changes, focusing on saving rates and current account balances. The econometric investigation based on the panel VAR model shows substantial demographic effects on national saving rates and current account balances in the major advanced (G-7) countries. An increase in the dependency rate significantly lowers saving rates, especially public saving rates. Further, a higher dependency rate significantly worsens current account balances.

KW - Current account

KW - Demographic changes

KW - Panel VAR

KW - Saving

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JO - Japan and the World Economy

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IS - 2

ER -

Demographic changes, saving, and current account: An analysis based on a panel VAR model

Abstract

Keywords

ASJC Scopus subject areas

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