Macroeconometric modeling of saving and investment for Mercosur countries

In the long run, the present value of current account balance cannot grow indefinitely large without precipitating in a macroeconomic crisis. This simple insight produces an econometrically testable relationship between saving and investment. We use data for four countries, which belong to the MERCO...

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Detalles Bibliográficos
Autores: Sinha, Tapen, Sinha, Dipendra
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1998
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:inglés
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/241
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/241
Access Level:acceso abierto
Palabra clave:Mercosur
macroeconomic crisis
econometrics
saving and investment
crisis macroeconómica
econometría
ahorro e inversión
Descripción
Sumario:In the long run, the present value of current account balance cannot grow indefinitely large without precipitating in a macroeconomic crisis. This simple insight produces an econometrically testable relationship between saving and investment. We use data for four countries, which belong to the MERCOSUR Common Trade Agreement: Argentina Brazil Paraguay and Uruguay. The results indicate that there is no long run relationship between saving and investment in these countries. Thus MERCOSUR IS likely to act as a palliative against such a possibility in the future.