Trade Surpluses and Life-Cycle Saving Behaviour
Posted: 23 Sep 2001
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: Suggested Citation