Blessed Mary, Forgive Us Our Deficits

48 Pages Posted: 23 Aug 2013

See all articles by Mika Nieminen

Mika Nieminen

University of Jyväskylä - School of Business and Economics

Kari Heimonen

University of Jyväskylä - School of Business and Economics

Esa Mangeloja

University of Jyväskylä - School of Business and Economics

Date Written: August 16, 2013

Abstract

Many studies have explored the medium-term determinants of current account balances. This paper contributes to the existing literature by introducing religious variables that until now have been omitted. We propose that Catholic countries tend to run current account deficits. This result remains robust even if we include both the official financial flows and the variables measuring the quality of institutions. In total we control for close to all of the variables that have been included in previous studies. To rationalize our result we consulted the World Values Survey and discovered that Roman Catholics do not consider thrift as important as other religious groups.

Keywords: Current account, Global imbalances, Panel regressions, Institutional development, Official financial flows, Religion

JEL Classification: F21, F32, F34, O43, Z1

Suggested Citation

Nieminen, Mika and Heimonen, Kari and Mangeloja, Esa, Blessed Mary, Forgive Us Our Deficits (August 16, 2013). Available at SSRN: https://ssrn.com/abstract=2314336 or http://dx.doi.org/10.2139/ssrn.2314336

Mika Nieminen (Contact Author)

University of Jyväskylä - School of Business and Economics ( email )

University of Jyväskylä
PO Box 35
FIN 40351, FIN-40014
Finland

Kari Heimonen

University of Jyväskylä - School of Business and Economics ( email )

University of Jyväskylä
PO Box 35
FIN 40351, FIN-40014
Finland

Esa Mangeloja

University of Jyväskylä - School of Business and Economics ( email )

University of Jyväskylä
PO Box 35
FIN 40351, FIN-40014
Finland

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