Savings and the Terms of Trade under Borrowing Constraints

The authors examine the extent to which permanent terms-of-trade shocks have an asymmetric effect on private savings. Using a simple three-period model, they show that if households expect to face binding constraints on borrowing in bad states of n...

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Bibliographic Details
Main Authors:	Agenor, Pierre-Richard, Aizenman, Joshua
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ARBITRAGE ASYMMETRIC SHOCKS BANK DEPOSITS BORROWING BUDGET DEFICITS CAPITAL GOODS CAPITAL MARKET CAPITAL MARKETS CENTRAL GOVERNMENTS COMMODITY EXPORTERS CONSUMERS CROSS- COUNTRY DATA CROSS-COUNTRY REGRESSION CROSS-SECTIONAL DATA CURRENCY CURRENCY UNITS CURRENT ACCOUNT CURRENT ACCOUNT SURPLUS CURRENT EXPENDITURES DATA SET DEPENDENT VARIABLE DEVELOPING COUNTRIES DIMINISHING MARGINAL UTILITY DISSAVINGS DOMESTIC FINANCE DOMESTIC LIQUIDITY ECONOMETRIC MODEL ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMISTS EMPIRICAL EVIDENCE EMPIRICAL RESULTS EXPECTED UTILITY EXPECTED VALUE EXPENDITURES EXPLANATORY VARIABLES EXPORT PRICE EXPORTERS EXPORTS FINANCIAL DEVELOPMENT FINANCIAL LIBERALIZATION FINANCIAL MARKETS FUNCTIONAL FORM GDP DEFLATOR GNP GNP PER CAPITA GNP PER CAPITA GROWTH RATE GROSS DOMESTIC PRODUCT GROSS NATIONAL PRODUCT GROWTH RATE INCENTIVES TO SAVE INCOME INCOME EFFECT INCOME SHOCKS INCOMES INDIVIDUAL COUNTRIES INFLATION INFLATION RATE LAGGED DEPENDENT LIQUIDITY LIQUIDITY CONSTRAINTS MACROECONOMIC EFFECTS MACROECONOMIC IMPLICATIONS MACROECONOMIC INSTABILITY MACROECONOMIC SHOCKS MACROECONOMIC VOLATILITY MACROECONOMICS MARGINAL UTILITY MEAN VALUE NATIONAL DEFENSE NEGATIVE EFFECT NEGATIVE IMPACT NEGATIVE SHOCK NEGATIVE WEALTH NET EXPORTS NOMINAL INTEREST RATES NON-OIL COMMODITY NON-OIL COMMODITY EXPORTERS OIL OIL EXPORTERS OIL PRICE OIL PRICES PER CAPITA GROWTH PER CAPITA INCOME PERMANENT INCOME PERMANENT INCOME HYPOTHESIS POLICY RESEARCH POOR COUNTRIES POSITIVE EFFECT POSITIVE RELATIONSHIP POSITIVE SHOCKS POVERTY REDUCTION PRICE INDEX PRIVATE AGENTS PRIVATE SECTOR PROPENSITY TO SAVE PUBLIC CONSUMPTION PUBLIC SAVINGS PUBLIC SECTOR REAL GDP REAL GNP REAL INCOME REAL INTEREST RATE REGRESSION RESULTS REGRESSION TECHNIQUES RELATIVE IMPORTANCE RELATIVE PRICE OF CAPITAL RISK AVERSION SAVINGS SAVINGS RATES SIGNIFICANT NEGATIVE SOVEREIGN RISK TAX REVENUE TERMS OF TRADE TIME SERIES TRADE EFFECTS TRADE SHOCKS TRADE VARIABLES TRANSITORY SHOCKS TROUGH WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2000/06/437121/savings-terms-trade-under-borrowing-constraints http://hdl.handle.net/10986/19837

Internet

http://documents.worldbank.org/curated/en/2000/06/437121/savings-terms-trade-under-borrowing-constraints
http://hdl.handle.net/10986/19837

Savings and the Terms of Trade under Borrowing Constraints

Internet

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