Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79854
Authors: 
Krause, Michael
Hoffmann, Mathias
Laubach, Thomas
Year of Publication: 
2013
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Open Economy Macroeconomics D02-V1
Abstract: 
Since 1991, survey expectations of long-run output growth for the U.S. relative to the rest of the world exhibit a pattern strikingly similar to that of the U.S. current account, and thus also to global imbalances. We show that this finding can to a large extent be rationalized in a two-region stochastic growth model simulated using expected trend growth filtered from observed productivity. In line with the intertemporal approach to the current account, a major part of the buildup of the U.S. current account deficit appears to be driven by the optimal response of households and firms to improved growth prospects.
JEL: 
F32
O40
D83
Document Type: 
Conference Paper

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