Alan J Auerbach, Kevin Hassett, Tuesday, March 3, 2015 - 00:00
Samuel Marden, Sunday, December 28, 2014 - 00:00
Enrico Minelli, Friday, December 19, 2014 - 00:00
Philippe Bacchetta, Kenza Benhima, Sunday, August 24, 2014 - 00:00
Among the various explanations behind global imbalances, the role of corporate saving has received relatively little attention. This column argues that corporate saving is quantitatively relevant, and proposes a theory that is consistent with the stylised facts and useful for understanding the current phase of global rebalancing. The theory implies that, while the economic contraction originating in developed countries has pushed interest rates towards the zero lower bound, the recent growth slowdown in emerging countries could push them out of it.
Per Krusell, Tony Smith, Sunday, June 1, 2014 - 00:00
Thomas Piketty’s new book has been widely praised for its empirical contribution, but his prediction of rising inequality rests on economic theory. This column argues that Piketty’s pessimistic forecast is based on an extreme – and unrealistic – assumption about households’ saving behaviour. According to standard theory, the wealth–income ratio would increase only modestly as growth falls, so declining growth would not be a powerful force for generating high inequality.
Charles Yuji Horioka, Akiko Terada-Hagiwara, Saturday, January 25, 2014 - 00:00
Corporate saving has sharply increased over the last two decades, but there has been relatively little research on its determinants. This column presents recent work that estimates Asian firms’ cash flow sensitivity of cash. The impact of cash flow on the increase in firms’ cash holdings is positive and statistically significant, and larger and more highly significant for smaller firms. Since smaller firms are more likely to be financially constrained, these results suggest that Asian firms – especially smaller ones – save more when their cash flow increases in order to finance future investments
James Choi, Emily Haisley, Jennifer Kurkoski, Cade Massey, Wednesday, March 28, 2012 - 00:00
As if today’s problems aren’t enough, in the coming years Europe faces what economists are calling a ‘demographic timebomb’, with ageing populations placing an unsustainable burden on already precarious public finances. In order to encourage more people to save for themselves, this column argues that using a psychological intervention can increase contributions to retirement savings accounts by up to 2.9% of income.
Fritz Foley, Tuesday, August 5, 2008 - 00:00
Crime rises when US welfare recipients run short of cash at the end of the month. This column discusses research that links the timing of financially-motivated crime and the timing of welfare payments. Cities that make monthly welfare payments see a clear monthly crime cycle, whereas cities that spread out the payments do not.