Trade Surpluses and Life-Cycle Saving Behaviour

Posted: 23 Sep 2001

See all articles by Tryggvi Thor Herbertsson

Tryggvi Thor Herbertsson

University of Reykjavik

Gylfi Zoega

University of Iceland; University of London - Birkbeck College; Centre for Economic Policy Research (CEPR)

Abstract

The national-income account identity and the life-cycle theory of consumption together imply that the current account should be a function of the age structure. A country with a high proportion of young and retired should have current account deficits. Using a panel of 84 countries, we find empirical support for this hypothesis.

JEL Classification: F41, F32

Suggested Citation

Herbertsson, Tryggvi Thor and Zoega, Gylfi, Trade Surpluses and Life-Cycle Saving Behaviour. Economics Letters, Vol. 65, 1999, pp 227-237. Available at SSRN: https://ssrn.com/abstract=270296

Tryggvi Thor Herbertsson

University of Reykjavik ( email )

Reykjavik
Iceland
+354 8613162 (Phone)

HOME PAGE: http://www.ru.is

Gylfi Zoega (Contact Author)

University of Iceland ( email )

IS-101 Reykjavik
Iceland

University of London - Birkbeck College ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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