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

Soyoung Kim, Jong Wha Lee

Research output: Contribution to journalArticle

23 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 languageEnglish
Pages (from-to)236-256
Number of pages21
JournalJapan and the World Economy
Volume20
Issue number2
DOIs
Publication statusPublished - 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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