Academic literature on the topic 'Equilibrium of savings and investments'

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Journal articles on the topic "Equilibrium of savings and investments"

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Ferrer-Comalat, Joan Carles, Dolors Corominas-Coll, and Salvador Linares-Mustarós. "A Fuzzy Economic Dynamic Model." Mathematics 9, no. 8 (April 10, 2021): 826. http://dx.doi.org/10.3390/math9080826.

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In the study presented here, fuzzy logic was used to analyze the behavior of a model of economic dynamics that assumes income to be in equilibrium when it is composed of consumption and investment, that is, when savings and investment are equal. The study considered that consumption and savings depend on the income of the previous period through uncertain factors, and, at the same time, that investment is an uncertain magnitude across various periods, represented as a fuzzy number with a known membership function. Under these conditions, the model determines the factor of income growth and investments required to maintain equilibrium, as well as the uncertain values of income for the different periods, expressed through fuzzy numbers. The study also analyzes the conditions for their convergence and the fuzzy value that income represents in equilibrium.
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Famielec, Józefa. "Sustainable Development as Equilibrium Between Investments and Savings – An Attempt Towards a New Conception." Problemy Zarzadzania 16, no. 3 (75) (July 17, 2018): 55–71. http://dx.doi.org/10.7172/1644-9584.75.3.

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N. Kirori, Dr Gabriel. "KRA Second University Symposium, 9th October 2020—Impact of Technology on Tax Administration." International Journal of Accounting and Finance Studies 3, no. 2 (November 25, 2020): p92. http://dx.doi.org/10.22158/ijafs.v3n2p92.

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This study investigates the theoretical basis for revenue mobilization and the role of technology in tax administration. Public finance theory supports the growth of the share of government expenditures to GDP with implications of constraints for public investment financing. The equilibrium predicted in the theory of loanable funds is no longer sustainable because of shortage of domestic savings creating a situation of excess demand for funds to finance public investments. Leveraging on technology can be an important administrative policy for boosting revenue mobilization. The study concludes that both tax administration reforms and quality of governance are complementary to technology in tax revenue mobilization in the developing economies.
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Chen, Hong, and Murray Frank. "Are Direct Investments by the Federal Reserve a Good Idea? A Corporate Finance Perspective." Quarterly Journal of Finance 06, no. 03 (August 4, 2016): 1650007. http://dx.doi.org/10.1142/s2010139216500075.

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Due to the crisis of 2007–2009, financial friction macro models are being used to provide a theoretical foundation for the evaluation of ‘unconventional policy’. In these models, banks take deposits from households and lend to firms. Empirically, other financial channels that are missing in the models, such as corporate bonds and equity, are also important. This paper analyzes a model in which bank loans and equity are both feasible. Households have limited ability to enforce their claims. If either the bank or the equity market are undistorted, the equilibrium is socially efficient. If both are distorted, the equilibrium is inefficient. In that case, government policy aimed at the bank or at the firm can be helpful. Suitably chosen equity injections, loans, or interest rate subsidies can all work. Interest rate subsidies have the advantage that they occur later and there is less concern about cheating. Equity injections have the advantage that they minimize the necessary level of tax imposed on households that is needed to achieve optimality. Optimal equity injections and optimal loan subsidies induce reductions in household savings (‘crowding out’). Optimal interest rate subsidies induce increases in household savings (‘crowding in’).
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Ezeji E, Chigbu, Ubah Chijindu Promise, and Chigbu Uzoamaka S. "Impact of Capital Inflows on Economic Growth of Developing Countries." International Journal of Management Science and Business Administration 1, no. 7 (2015): 7–21. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.17.1001.

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This study examines the impact of capital inflows on economic growth of developing economies; the case of Nigeria, Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the huge inflows of foreign capital in developing economies over the years have transmitted to real economic growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to estimate the model. The findings reveals that capital inflows have significant impact on the economic growth of the three countries. In Nigeria and Ghana, foreign direct and portfolio investment as well as foreign borrowings have significant and positive impact on economic growth. Workers’ remittances significantly and positively related to the economic growth of the three countries. The enabling environment should be created in the developing countries to encourage more inflow of foreign investments and workers remittances. This will help in closing the savings-investment gap and encourage economic growth in these countries. The study signifies that capital inflows is indispensable in closing the savings-investment gap required for economic growth of developing countries.
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Adedokun, Adeniyi J., Olabusuyi R. Falayi, and Adebowale M. Adeleke. "An autoregressive analysis of the determinants of private savings in Nigeria." Review of innovation and competitiveness 6, no. 1 (February 12, 2020): 5–20. http://dx.doi.org/10.32728/ric.2020.61/1.

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Purpose. Despite the increasing trend of private savings in Nigeria, the country is still characterised by low investment and output growth, thus, suggesting that the average saving rate is still far from being impressive. This study investigates the determinants of private savings in Nigeria. Methodology. Autoregressive Distributed Lag (ARDL) Model using annual time series data from 1981 to 2016 within the theoretical framework derived from the life-cycle hypothesis is employed in this study. The key variables under investigation are private savings, income, dependency ratio, real interest rate, social security payment, financial development and macroeconomic stability. The data used for analysis are sourced from Central Bank of Nigeria Statistical Bulletin (2016) and World Development Indicator (2016). Findings. The results show that lifetime income and social security payment have significant positive relationship with private saving in the long-run, while adult dependency has significant negative relationship. In the short-run, adult dependency and social security payment have significant positive relationship with private savings. In addition, the result shows that 62% of deviation from the long-run equilibrium level of private savings is annually corrected for by the model estimated. Originality. This research investigates both the long-run and short-run effects of the various determinants of private savings in Nigeria. Thus, the study can serve as eye opener to the important variables that can improve the level of private savings in Nigeria.
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Ferrer-Comalat, Joan Carles, Salvador Linares-Mustarós, and Ricard Rigall-Torrent. "Incorporating Fuzzy Logic in Harrod’s Economic Growth Model." Mathematics 9, no. 18 (September 8, 2021): 2194. http://dx.doi.org/10.3390/math9182194.

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This paper suggests the possibility of incorporating the methodology of fuzzy logic theory into Harrod’s economic growth model, a classic model of economic dynamics for studying the growth of a developing economy based on the assumption that an economy with only savings and investment income is in equilibrium when savings are equal to investment. This model was the first precursor to exogenous growth models, which in turn gave rise to endogenous growth models. This article therefore represents a first step towards introducing fuzzy logic into economic growth models. The study concerned considers consumption and savings to depend on income by means of uncertain factors, and investment to depend on the variation of income through the accelerator factor, which we consider uncertain. These conditions are used to determine the equilibrium growth rate of income and investment, as well as the uncertain values for these variables in terms of fuzzy numbers. As a result, the new model is shown to expand the classical model by incorporating uncertainty into its variables.
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Hillebrand, Marten, Tomoo Kikuchi, and Masaya Sakuragawa. "BUBBLES AND CROWDING-IN OF CAPITAL VIA A SAVINGS GLUT." Macroeconomic Dynamics 22, no. 5 (July 4, 2017): 1238–66. http://dx.doi.org/10.1017/s1365100516000699.

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This paper uncovers a mechanism by which bubbles crowd in capital investment. If capital formation is initially depressed by a binding credit constraint, a bubble triggers a savings glut. Higher returns in a new bubbly equilibrium attract additional savings, which are channeled to expand investment at the extensive margin, leading to permanently higher capital, output, and wages. We demonstrate that crowding-in through this channel is a robust phenomenon that occurs along the entire time path.
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K., Otiwu, Peter A. Okere, and Uzowuru L.N. "DETERMINANTS OF PRIVATE DOMESTIC SAVINGS IN NIGERIA (1981- 2015)." International Journal for Innovation Education and Research 6, no. 2 (February 28, 2018): 21–40. http://dx.doi.org/10.31686/ijier.vol6.iss2.938.

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This study empirically evaluates the determinants of private domestic savings in Nigeria (1981- 2015). Secondary data were sourced from CBN statistical bulletin and bureau of statistics. Hypotheses were formulated and tested using vector error correction model (VECM) and the test for stationarity proves that the variables are integrated in 1(1) order which implies that unit roots do not exist among the variables. There is also long-run equilibrium relationship between the variables and the result also confirms about 29 percent short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 78 percent of the variations in private domestic savings are explained by changes in its determinants in Nigeria. The results show that per capita income and financial inclusion are major determinants of private domestic savings in Nigeria. The study therefore recommends that concerted and well articulated efforts should be made to make available and affordable credits to productive investments like small scale industries/businesses as they constitute an integral part of the growth and transformation process of an agro based economy like that of Nigeria this will induce employment, increase financial access and income of the various economic agents which will have a spillover effect on private savings. Secondly, since Per capita income and financial inclusion are the important factors that influence private savings in Nigeria, policy makers can promote growth of per capita income by improving productivity of workers and greater effort should be geared towards sustaining or improving on the financial inclusion strategies.
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de La Grandville, Olivier. "WHY IS OPTIMAL GROWTH THEORY MUTE? RESTORING ITS RIGHTFUL VOICE." Macroeconomic Dynamics 22, no. 1 (January 2018): 77–100. http://dx.doi.org/10.1017/s1365100516000742.

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Optimal growth theory as it stands today does not work. Using strictly concave utility functions systematically inflicts on the economy distortions that are either historically unobserved or unacceptable by society. Moreover, we show that the traditional approach is incompatible with competitive equilibrium: Any economy initially in such equilibrium will always veer away into unwanted trajectories if its investment is planned using a concave utility function. We then propose a rule for the optimal savings-investment rate based on competitive equilibrium that simultaneously generates three intertemporal optima for society. The rule always leads to reasonable time paths for all central economic variables, even under very different hypotheses about the future evolution of population and technical progress.
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Dissertations / Theses on the topic "Equilibrium of savings and investments"

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LU, CHAO, BO YUAN, and MANHENG WANG. "Savings, Investments and Growth Rates." Thesis, Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-23428.

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Aims: In this article, we will apply the multinational view to explore the relationships between saving, investment and economic growth. We will explore the dynamic relationship among these three factors from the empirical perspective. We are going to compare the mutual influence among these three factors and try to figure out the dynamic correlation. And find out the factors that influence economic growth the most in the short run and long run respectively.   Method: For the research purpose and the contents, our article applies several methods such as literature research, quantitative research, comprehensive analysis and logical induction and comparison research. We separate two parts to analysis. In the first part we will use the stepwise regression method to prove our five assumptions and through path analysis to calculate path coefficient. In order to guarantee the stability of these data, these indexes apply the average value of 214 countries from 2000 to 2011. In the second part, we will use a Cobb-Douglas production model to figure out the long run economic growth behavior, we will introduce the concept of total factor productivity. And use the data of a sample space of 35 in the interval of 1975 to 2009.   Limitations: Firstly, the paper didn’t investigate datum on further step, or has deeper proceeding of default datum, the data quality might occur to important influence to the conclusion, it did need to take cautious attitudes. Secondly, the paper acquires relative simple control variables, where default datum of control variable might induce strong influence on the conclusion, thus a deeper analyses need take many various factors into considerations, in order to analyze net effects of two variables. Thirdly, it clarifies from the degree of fitting, the paper using relative simple model, and does affect quality of the process, to get deeper analyze then needs more precious model for further analyze.   Conclusion: This paper provided evidence to show economic growth is positive related to saving and investment and is negative to income level. Saving rate is positive related to income level and positive related to investment level, saving rate has indirect effect on economic growth, and saving rate has indirect effect on economic growth via investment rate. And there is a close relationship between investment and economic growth. Solow residual indicates that we will have to rely on the technology progress to increase efficiency in the long run.
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Kavalírek, Jan. "Role bankovních úvěrů nefinančním podnikům v hospodářském cyklu." Master's thesis, Vysoká škola ekonomická v Praze, 2017. http://www.nusl.cz/ntk/nusl-360161.

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The theoretical part of the thesis introduces Austrian theory of business cycles and analyses equilibrium of savings and investments together with the transmission mechanism between savings, deposits, loans and investments. The practical part of the thesis explores business cycle and credit cycle. It analyses an excessive loan expansion of commercial banks together with a excessively expansive policy of central bank. The thesis deals with a procyclical action of commercial banks and contemporary tools of central bank with their limited effectiveness. Furthermore, the thesis analyses the possible adjustments of monetary policy with the emphasis on the macroprudential policy and its individual credit indicators. The end of the thesis deals with the method of credit rationing and with the imbalance between demand and supply at the credit market of non-financial corporations, which is modelled using the technique of disequilibrium model.
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Yoon, Byungtae. "Motives for savings and portfolio choice evidence from micro-data for Japan /." Diss., Columbia, Mo. : University of Missouri-Columbia, 2006. http://hdl.handle.net/10355/4433.

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Thesis (Ph. D.) University of Missouri-Columbia, 2006.
The entire dissertation/thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file (which also appears in the research.pdf); a non-technical general description, or public abstract, appears in the public.pdf file. Title from title screen of research.pdf file (viewed on August 10, 2007) Vita. Includes bibliographical references.
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Lenza, Michèle. "Essays on monetary policy, saving and investment." Doctoral thesis, Universite Libre de Bruxelles, 2007. http://hdl.handle.net/2013/ULB-DIPOT:oai:dipot.ulb.ac.be:2013/210659.

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This thesis addresses three relevant macroeconomic issues: (i) why

Central Banks behave so cautiously compared to optimal theoretical

benchmarks, (ii) do monetary variables add information about

future Euro Area inflation to a large amount of non monetary

variables and (iii) why national saving and investment are so

correlated in OECD countries in spite of the high degree of

integration of international financial markets.

The process of innovation in the elaboration of economic theory

and statistical analysis of the data witnessed in the last thirty

years has greatly enriched the toolbox available to

macroeconomists. Two aspects of such a process are particularly

noteworthy for addressing the issues in this thesis: the

development of macroeconomic dynamic stochastic general

equilibrium models (see Woodford, 1999b for an historical

perspective) and of techniques that enable to handle large data

sets in a parsimonious and flexible manner (see Reichlin, 2002 for

an historical perspective).

Dynamic stochastic general equilibrium models (DSGE) provide the

appropriate tools to evaluate the macroeconomic consequences of

policy changes. These models, by exploiting modern intertemporal

general equilibrium theory, aggregate the optimal responses of

individual as consumers and firms in order to identify the

aggregate shocks and their propagation mechanisms by the

restrictions imposed by optimizing individual behavior. Such a

modelling strategy, uncovering economic relationships invariant to

a change in policy regimes, provides a framework to analyze the

effects of economic policy that is robust to the Lucas'critique

(see Lucas, 1976). The early attempts of explaining business

cycles by starting from microeconomic behavior suggested that

economic policy should play no role since business cycles

reflected the efficient response of economic agents to exogenous

sources of fluctuations (see the seminal paper by Kydland and Prescott, 1982}

and, more recently, King and Rebelo, 1999). This view was challenged by

several empirical studies showing that the adjustment mechanisms

of variables at the heart of macroeconomic propagation mechanisms

like prices and wages are not well represented by efficient

responses of individual agents in frictionless economies (see, for

example, Kashyap, 1999; Cecchetti, 1986; Bils and Klenow, 2004 and Dhyne et al. 2004). Hence, macroeconomic models currently incorporate

some sources of nominal and real rigidities in the DSGE framework

and allow the study of the optimal policy reactions to inefficient

fluctuations stemming from frictions in macroeconomic propagation

mechanisms.

Against this background, the first chapter of this thesis sets up

a DSGE model in order to analyze optimal monetary policy in an

economy with sectorial heterogeneity in the frequency of price

adjustments. Price setters are divided in two groups: those

subject to Calvo type nominal rigidities and those able to change

their prices at each period. Sectorial heterogeneity in price

setting behavior is a relevant feature in real economies (see, for

example, Bils and Klenow, 2004 for the US and Dhyne, 2004 for the Euro

Area). Hence, neglecting it would lead to an understatement of the

heterogeneity in the transmission mechanisms of economy wide

shocks. In this framework, Aoki (2001) shows that a Central

Bank maximizing social welfare should stabilize only inflation in

the sector where prices are sticky (hereafter, core inflation).

Since complete stabilization is the only true objective of the

policymaker in Aoki (2001) and, hence, is not only desirable

but also implementable, the equilibrium real interest rate in the

economy is equal to the natural interest rate irrespective of the

degree of heterogeneity that is assumed. This would lead to

conclude that stabilizing core inflation rather than overall

inflation does not imply any observable difference in the

aggressiveness of the policy behavior. While maintaining the

assumption of sectorial heterogeneity in the frequency of price

adjustments, this chapter adds non negligible transaction

frictions to the model economy in Aoki (2001). As a

consequence, the social welfare maximizing monetary policymaker

faces a trade-off among the stabilization of core inflation,

economy wide output gap and the nominal interest rate. This

feature reflects the trade-offs between conflicting objectives

faced by actual policymakers. The chapter shows that the existence

of this trade-off makes the aggressiveness of the monetary policy

reaction dependent on the degree of sectorial heterogeneity in the

economy. In particular, in presence of sectorial heterogeneity in

price adjustments, Central Banks are much more likely to behave

less aggressively than in an economy where all firms face nominal

rigidities. Hence, the chapter concludes that the excessive

caution in the conduct of monetary policy shown by actual Central

Banks (see, for example, Rudebusch and Svennsson, 1999 and Sack, 2000) might not

represent a sub-optimal behavior but, on the contrary, might be

the optimal monetary policy response in presence of a relevant

sectorial dispersion in the frequency of price adjustments.

DSGE models are proving useful also in empirical applications and

recently efforts have been made to incorporate large amounts of

information in their framework (see Boivin and Giannoni, 2006). However, the

typical DSGE model still relies on a handful of variables. Partly,

this reflects the fact that, increasing the number of variables,

the specification of a plausible set of theoretical restrictions

identifying aggregate shocks and their propagation mechanisms

becomes cumbersome. On the other hand, several questions in

macroeconomics require the study of a large amount of variables.

Among others, two examples related to the second and third chapter

of this thesis can help to understand why. First, policymakers

analyze a large quantity of information to assess the current and

future stance of their economies and, because of model

uncertainty, do not rely on a single modelling framework.

Consequently, macroeconomic policy can be better understood if the

econometrician relies on large set of variables without imposing

too much a priori structure on the relationships governing their

evolution (see, for example, Giannone et al. 2004 and Bernanke et al. 2005).

Moreover, the process of integration of good and financial markets

implies that the source of aggregate shocks is increasingly global

requiring, in turn, the study of their propagation through cross

country links (see, among others, Forni and Reichlin, 2001 and Kose et al. 2003). A

priori, country specific behavior cannot be ruled out and many of

the homogeneity assumptions that are typically embodied in open

macroeconomic models for keeping them tractable are rejected by

the data. Summing up, in order to deal with such issues, we need

modelling frameworks able to treat a large amount of variables in

a flexible manner, i.e. without pre-committing on too many

a-priori restrictions more likely to be rejected by the data. The

large extent of comovement among wide cross sections of economic

variables suggests the existence of few common sources of

fluctuations (Forni et al. 2000 and Stock and Watson, 2002) around which

individual variables may display specific features: a shock to the

world price of oil, for example, hits oil exporters and importers

with different sign and intensity or global technological advances

can affect some countries before others (Giannone and Reichlin, 2004). Factor

models mainly rely on the identification assumption that the

dynamics of each variable can be decomposed into two orthogonal

components - common and idiosyncratic - and provide a parsimonious

tool allowing the analysis of the aggregate shocks and their

propagation mechanisms in a large cross section of variables. In

fact, while the idiosyncratic components are poorly

cross-sectionally correlated, driven by shocks specific of a

variable or a group of variables or measurement error, the common

components capture the bulk of cross-sectional correlation, and

are driven by few shocks that affect, through variable specific

factor loadings, all items in a panel of economic time series.

Focusing on the latter components allows useful insights on the

identity and propagation mechanisms of aggregate shocks underlying

a large amount of variables. The second and third chapter of this

thesis exploit this idea.

The second chapter deals with the issue whether monetary variables

help to forecast inflation in the Euro Area harmonized index of

consumer prices (HICP). Policymakers form their views on the

economic outlook by drawing on large amounts of potentially

relevant information. Indeed, the monetary policy strategy of the

European Central Bank acknowledges that many variables and models

can be informative about future Euro Area inflation. A peculiarity

of such strategy is that it assigns to monetary information the

role of providing insights for the medium - long term evolution of

prices while a wide range of alternative non monetary variables

and models are employed in order to form a view on the short term

and to cross-check the inference based on monetary information.

However, both the academic literature and the practice of the

leading Central Banks other than the ECB do not assign such a

special role to monetary variables (see Gali et al. 2004 and

references therein). Hence, the debate whether money really

provides relevant information for the inflation outlook in the

Euro Area is still open. Specifically, this chapter addresses the

issue whether money provides useful information about future

inflation beyond what contained in a large amount of non monetary

variables. It shows that a few aggregates of the data explain a

large amount of the fluctuations in a large cross section of Euro

Area variables. This allows to postulate a factor structure for

the large panel of variables at hand and to aggregate it in few

synthetic indexes that still retain the salient features of the

large cross section. The database is split in two big blocks of

variables: non monetary (baseline) and monetary variables. Results

show that baseline variables provide a satisfactory predictive

performance improving on the best univariate benchmarks in the

period 1997 - 2005 at all horizons between 6 and 36 months.

Remarkably, monetary variables provide a sensible improvement on

the performance of baseline variables at horizons above two years.

However, the analysis of the evolution of the forecast errors

reveals that most of the gains obtained relative to univariate

benchmarks of non forecastability with baseline and monetary

variables are realized in the first part of the prediction sample

up to the end of 2002, which casts doubts on the current

forecastability of inflation in the Euro Area.

The third chapter is based on a joint work with Domenico Giannone

and gives empirical foundation to the general equilibrium

explanation of the Feldstein - Horioka puzzle. Feldstein and Horioka (1980) found

that domestic saving and investment in OECD countries strongly

comove, contrary to the idea that high capital mobility should

allow countries to seek the highest returns in global financial

markets and, hence, imply a correlation among national saving and

investment closer to zero than one. Moreover, capital mobility has

strongly increased since the publication of Feldstein - Horioka's

seminal paper while the association between saving and investment

does not seem to comparably decrease. Through general equilibrium

mechanisms, the presence of global shocks might rationalize the

correlation between saving and investment. In fact, global shocks,

affecting all countries, tend to create imbalance on global

capital markets causing offsetting movements in the global

interest rate and can generate the observed correlation across

national saving and investment rates. However, previous empirical

studies (see Ventura, 2003) that have controlled for the effects

of global shocks in the context of saving-investment regressions

failed to give empirical foundation to this explanation. We show

that previous studies have neglected the fact that global shocks

may propagate heterogeneously across countries, failing to

properly isolate components of saving and investment that are

affected by non pervasive shocks. We propose a novel factor

augmented panel regression methodology that allows to isolate

idiosyncratic sources of fluctuations under the assumption of

heterogenous transmission mechanisms of global shocks. Remarkably,

by applying our methodology, the association between domestic

saving and investment decreases considerably over time,

consistently with the observed increase in international capital

mobility. In particular, in the last 25 years the correlation

between saving and investment disappears.


Doctorat en sciences économiques, Orientation économie
info:eu-repo/semantics/nonPublished

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Zainir, F. "Private savings, financial developments and institutions in emerging economies." Thesis, Coventry University, 2012. http://curve.coventry.ac.uk/open/items/49c61e95-2367-4ace-8f9f-92f5ac8cf5c7/1.

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In the 1950s and 1960s, after gaining independence from their colonial powers, most developing countries adopted “market substitution” as their policy for economic development and growth. In essence, this was an industrialisation strategy followed by these developing economies to concentrate on home-grown products and nurture their expertise in order to reach the status of industrialised nations. However, by the end of 1970s, many developing countries began to realize the failures of their inward-looking approach to industrialization when their economies were mired with high unemployment, inflation and chronic external debt. By the middle of 1980s, many of these countries began to change their policies and reorient themselves into market economies. However, with financial crises and economic recessions that resulted from pursuing market driven liberalization policies, these economies began to realize the flaws of the market driven approach to industrialization. Nevertheless, they continued with the liberalised policies incorporating market as well as non-market (institutional) reforms, aimed at strengthening regulation, improving corporate governance and curbing corruption to avoid the destabilising consequences of financial liberalization. The evolving economic policies that influenced financial development and growth in developing economies came about with the objective of enhancing household and private sector‘s savings. These policies have been designed to influence financial development and economic growth (which can impact upon private savings) in two different ways: (i) by increasing saving due to households taking precautionary motives, or (ii) negatively by spending more due to increase in overall expenditures. Theoretically, the combined effect on private saving is therefore ambiguous. The purpose of this thesis is to assess empirically the importance of various economic factors influencing private sector savings in emerging market economies. In addition, the influence of non-market institutional factors on savings is explored from the incorporation of newly institutional measures into these countries economic policies. Several econometric methodologies are employed with empirical analysis conducted on data for twenty emerging economies across three primary regions in the world, i.e. Asia Pacific, Middle East and North African (MENA), and South America. The twenty countries also include other emerging economies that are proximate to MENA regions such as South Africa, Turkey and Israel. In general, the findings based on SUR (Seemingly Unrelated Regression) methodology show that per capita growth, financial development, government savings, and trade openness have a positive impact on private savings; while youth and old dependency-age groups, real interest rate, and urban growth have a negative effect on private savings. In general, most of these results are consistent with previous studies for other countries. Additionally, causality tests are conducted using Vector Autoregressive (VAR) methodology as well as Pedroni and Johansen cointegration methods within the Vector Error Correction (VEC) model to determine both short-term and long-term causality effects between financial development and economic growth. The results indicate that in the long run financial development has a causal effect on growth; however, in the short run the results are quite mixed. For example, the short run result using the VAR method shows that income growth has Granger causality effect on financial development, but the F-test result for the VEC method shows evidence of bivariate causality. The long-term causality results also confirm the finding of previous research about the importance of developing financial sector in order to spur the country‘s economic growth. The final empirical investigation is to conduct panel data regression to test the impact of non-market institutions on private savings. The main result here is that sound institutional factors based on respect for property rights (e.g. bureaucracy, accountability and regulation quality) have a positive effect on aggregate private savings. Furthermore, political stability is found to have a negative impact on savings while efficient bureaucracy has a positive impact on savings. It can be construed that with an uncertain political environment, i.e. diminishing political stability, the public in general would save more than spend. On the other hand, efficient bureaucracy would boost public confidence about the country‘s governance, which can lead to increased overall savings by the public.
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Ersado, Lire. "Three Essays in Development Economics: Savings Behavior and Risk; Health and Public Investments; and Sequential Technology Adoption." Diss., Virginia Tech, 2001. http://hdl.handle.net/10919/28678.

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This dissertation explores household risk and savings behavior in Zimbabwe, and agricultural technology adoption, and the impact of public investments on the economy and community health in Ethiopia. The first paper analyzes changes in per capita consumption and savings behavior in Zimbabwe before and after a range of financial and weather-related shocks using comparable national income, consumption and expenditure surveys of 1990/91 and 1995/96. The empirical results show that before droughts and macroeconomic adjustments Zimbabweans used savings to smooth consumption. In contrast, risk management strategies were severely limited after the shocks; consumption tracked income more closely in the latter period. The inability to effectively address the risks arising from droughts and economy-wide structural changes implies that any subsequent economic and social uncertainty will have serious welfare consequences. The second paper examines the interaction between public investments, community health, and productivity- and land-enhancing technology adoption decisions by farm households in Northern Ethiopia. It models technology adoption as a sequential process where the timing of choices can matter. The econometric test results indicate that the decision and intensity of technology adoption are highly correlated with the sequential nature of adoption. The most striking results concern the importance of disease - the amount of time spent sick and time spent caring for sick family members are inversely associated with both the decision and intensity of technology adoption. Finally the third paper looks at the welfare impacts of a public water resource development project with health side effects in Tigray, Northern Ethiopia. It uses a model of a social planner to characterize the optimal implementation of such projects over time, showing how health and production are important considerations in this decision. The empirical analysis shows that the marginal net benefits of Tigray's current microdam investments are positive. The lost income households suffer from increased time away from productive activities (due to sickness) is compensated for by increased yields and market opportunities brought about through irrigated agriculture. However, it should be noted that this conclusion is based on efficiency and not equity.
Ph. D.
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Rabitsch, Katrin, and Christian Schoder. "Buffer stock savings in a New-Keynesian business cycle model." WU Vienna University of Economics and Business, 2016. http://epub.wu.ac.at/5158/1/wp231.pdf.

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We introduce the tractable buffer stock savings setup of Carroll (2009 NBER Working Paper) into an otherwise conventional New-Keynesian dynamic stochastic general equilibrium model with financial frictions. The introduction of a precautionary saving motive arising from an uninsurable risk of permanent income loss, affects the model's properties in a number of interesting ways: it produces a more hump-shaped reaction of consumption in response to both supply (technology) and demand (monetary) shocks, and more pronounced reactions in response to demand shocks. Adoption of the buffer stock savings setup thus offers a more microfounded way, compared to, e.g., habit preferences in consumption, to introduce Keynesian features into the model, serving as a device to curbing excessive consumption smoothing, and to attributing a higher role to demand driven fluctuations. We also discuss steady state effects, determinacy properties as well as other practical issues. (authors' abstract)
Series: Department of Economics Working Paper Series
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Mulenga, Majorie Chalwe. "The causal link between foreign direct investment and domestic savings in Zambia." Thesis, Stellenbosch : Stellenbosch University, 2015. http://hdl.handle.net/10019.1/97466.

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Thesis (MDF)--Stellenbosch University, 2015.
ENGLISH ABSTRACT: This study examined the causal relationship between foreign direct investment and domestic savings in Zambia. Data over the period 1970–2012 was extracted from the World Development Indicator and Global Economic Monitor Databases (2014). The study employed the Johansen cointegration approach to establish the long-standing relationship between domestic savings and foreign direct investment. In addition, the Granger causality test was also carried out to examine the causal relationship between foreign direct investment and gross domestic savings. The results suggest that although foreign direct investment inflow can lead to domestic savings growth in the short run, in the long run it would substitute domestic savings. This implies that the effect of the increased inflows of foreign direct investment experienced in the recent past may in the long run hurt domestic savings growth in Zambia. Policy makers should therefore improve the governance mechanism for the use and monitoring of foreign direct investment inflows in Zambia and promote diversification away from mining, the main economic activity that accounts for more than 60 percent of direct foreign investment in Zambia.
AFRIKAANSE OPSOMMING: Hierdie studie het ondersoek ingestel na die oorsaaklikheidsverwantskap tussen direkte buitelandse belegging en binnelandse besparing in Zambië. Data vir die tydperk 1970 tot 2012 is uit die Wêreldbank se databasisse World Development Indicators en Global Economic Monitor (2014) bekom. Die studie het die Johansen-benadering van ko-integrasie gevolg om die lank bestaande verwantskap tussen binnelandse besparing en direkte buitelandse belegging te bepaal. Daarbenewens is die Granger-oorsaaklikheidstoets uitgevoer om die oorsaaklikheidsverwantskap tussen direkte buitelandse belegging en bruto binnelandse besparing te ondersoek. Die resultate dui daarop dat hoewel die invloeiing van direkte buitelandse belegging binnelandse besparing op kort termyn ’n hupstoot sal gee, dit binnelandse besparing op lang termyn sal vervang. Dít impliseer dat die verhoogde direkte buitelandse belegging wat in die onlangse verlede ondervind is, op lang termyn ’n skadelike uitwerking op groei in binnelandse besparing in Zambië kan hê. Beleidsvormers behoort dus die beheermeganisme vir die aanwending en monitering van direkte buitelandse belegging in Zambië te verbeter en diversifikasie aan te moedig weg van mynbou, die vernaamste ekonomiese aktiwiteit in die land wat tans vir meer as 60% van alle direkte buitelandse belegging in Zambië sorg.
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Lundvall, Henrik. "Poverty and the dynamics of equilibrium unemployment : essays on the economics of job search, skills, and savings." Doctoral thesis, Handelshögskolan i Stockholm, Samhällsekonomi (S), 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-1157.

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Holtkamp, Michael [Verfasser]. "The Wider Impacts of Transport Infrastructure Investments: Agglomeration and Imperfect Competition in General Equilibrium / Michael Holtkamp." Kiel : Universitätsbibliothek Kiel, 2018. http://d-nb.info/1169132634/34.

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Books on the topic "Equilibrium of savings and investments"

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Savings & investments. London: Tesco, 2000.

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Meg, Green, ed. Savings and investments. New York, NY: Rosen Central, 2012.

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Mario, Amendola. Out of equilibrium. Oxford: Clarendon Press, 1998.

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Yi, Wen. By force of demand: Explaining international comovements and the saving-investment correlation puzzle. [St. Louis, Mo.]: Federal Reserve Bank of St. Louis, 2005.

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Bovenberg, Ary Lans. Promoting investment under international capital mobility: An intertemporal general equilibrium analysis. Cambridge, MA: National Bureau of Economic Research, 1989.

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Lustig, Hanno. Can housing collateral explain long-run swings in asset returns? Cambridge, Mass: National Bureau of Economic Research, 2006.

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Bachmann, Ruediger. Lumpy investment in dynamic general equilibrium. Cambridge, MA: National Bureau of Economic Research, 2006.

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Bachmann, Ruediger. Lumpy investment in dynamic general equilibrium. Cambridge, MA: Massachusetts Institute of Technology, Dept. of Economics, 2006.

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Bachmann, Ruediger. Lumpy investment in dynamic general equilibrium. Cambridge, Mass: National Bureau of Economic Research, 2006.

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Donoghue, William E. Donoghue's investment tips for retirement savings. New York: Perennial Library, 1987.

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Book chapters on the topic "Equilibrium of savings and investments"

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Boczko, Tony. "Savings and investments." In Managing Your Money, 200–230. London: Macmillan Education UK, 2016. http://dx.doi.org/10.1007/978-1-137-47188-8_9.

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Schefold, Bertram. "Savings, Investment and Capital in a System of General Intertemporal Equilibrium — an Extended Comment on Garegnani with a Note on Parrinello." In Sraffa or An Alternative Economics, 127–86. London: Palgrave Macmillan UK, 2008. http://dx.doi.org/10.1057/9780230375338_7.

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Falkinger, Josef. "Investment and savings. Supply-side vs. demand-side macroeconomic equilibria." In Contributions to Economics, 151–76. Heidelberg: Physica-Verlag HD, 2002. http://dx.doi.org/10.1007/978-3-7908-2649-4_7.

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Jimon, Stefania Amalia, Florin Cornel Dumiter, and Nicolae Baltes. "Personal Savings and Investments in the Financial Market." In Financial and Monetary Policy Studies, 125–32. Cham: Springer International Publishing, 2021. http://dx.doi.org/10.1007/978-3-030-74454-0_6.

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Lebedinskaya, Olga G., Alexander G. Timofeev, Elvira A. Yarnykh, Nina A. Eldyaeva, and Sergey V. Golodov. "Features of the Population’s Savings Transformation into Investments at the Present Stage." In Advances in Intelligent Systems and Computing, 510–18. Cham: Springer International Publishing, 2018. http://dx.doi.org/10.1007/978-3-319-75383-6_65.

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Passacantando, Mauro, and Fabio Raciti. "A Traffic Equilibrium Nonlinear Programming Model for Optimizing Road Maintenance Investments." In AIRO Springer Series, 267–77. Cham: Springer International Publishing, 2019. http://dx.doi.org/10.1007/978-3-030-34960-8_24.

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Rentschler, Jun, Florian Flachenecker, and Martin Kornejew. "Assessing Carbon Emission Savings from Corporate Resource Efficiency Investments: An Estimation Indicator in Theory and Practice." In Investing in Resource Efficiency, 107–37. Cham: Springer International Publishing, 2018. http://dx.doi.org/10.1007/978-3-319-78867-8_6.

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Fabel, Oliver. "Firm Foundations and Human Capital Investments: The O-Ring Approach to Organizational Equilibrium in an Emerging Industry." In Modern Concepts of the Theory of the Firm, 315–38. Berlin, Heidelberg: Springer Berlin Heidelberg, 2004. http://dx.doi.org/10.1007/978-3-662-08799-2_20.

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Garegnaniy, Pierangelo. "Savings, investment and capital in a system of general intertemporal equilibrium." In General Equilibrium, 117–75. Routledge, 2003. http://dx.doi.org/10.4324/9780203217610-5.

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Fehr, Hans, and Fabian Kindermann. "The life-cycle model and intertemporal choice." In Introduction to Computational Economics Using Fortran. Oxford University Press, 2018. http://dx.doi.org/10.1093/oso/9780198804390.003.0009.

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The discussion in the Chapters 3 and 4 centred around static optimization problems.The static general equilibrium model of Chapter 3 features an exogenous capital stock and Chapter 4 discusses investment decisions with risky assets, but in a static context. In this chapter we take a first step towards the analysis of dynamic problems. We introduce the life-cycle model and analyse the intertemporal choice of consumption and individual savings. We start with discussing the most basic version of this model and then introduce labour-income uncertainty to explain different motives for saving. In later sections, we extended the model by considering alternative savings vehicles and explain portfolio choice and annuity demand. Throughout this chapter we follow a partial equilibrium approach, so that factor prices for capital and labour are specified exogenously and not determined endogenously as in Chapter 3. This section assumes that households can only save in one asset. Since we abstract from bequest motives in this chapter, households do save because they need resources to consume in old age or because they want to provide a buffer stock in case of uncertain future outcomes.The first motive is the so-called old-age savings motive while the second is the precautionary savings motive. In order to derive savings decisions it is assumed in the following that a household lives for three periods. In the first two periods the agent works and receives labour income w while in the last period the agent lives from his accumulated previous savings. In order to derive the optimal asset structure a2 and a3 (i.e. the optimal savings), the agent maximizes the utility function . . . U(c1, c2, c3) = u(c1) + βu(c2) + β2u(c3) . . . where β denotes a time discount factor and u(c) = c1−1/γ /1−1/γ describes the preference function with γ ≥ 0 measuring the intertemporal elasticity of substitution.
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Conference papers on the topic "Equilibrium of savings and investments"

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JUREVICIENE, DAIVA, EGIDIJUS BIKAS, and ARVYDAS PASKEVICIUS. "SAVINGS AND INVESTMENTS: AN ASPECT OF SUSTAINABILITY." In Proceedings of the International Conference on ICMMS 2008. IMPERIAL COLLEGE PRESS, 2010. http://dx.doi.org/10.1142/9781848165106_0086.

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Takashima, Ryuta. "Investments and Asset Returns in Competitive Equilibrium: An Application to Renewable Energy Policy." In 2018 IEEE International Conference on Systems, Man, and Cybernetics (SMC). IEEE, 2018. http://dx.doi.org/10.1109/smc.2018.00169.

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Ciaccia, Gervasio, Fulvio Fontini, and Lorenzo Paloscia. "The energy conservation supply curve from investments in energy savings in the existing Italian buildings." In 2008 5th International Conference on the European Electricity Market (EEM 2008). IEEE, 2008. http://dx.doi.org/10.1109/eem.2008.4579065.

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Thompson, Christopher C., Konstantinos Oikonomou, Amir H. Etemadi, and Volker J. Sorger. "Optimization of data center battery storage investments for microgrid cost savings, emissions reduction, and reliability enhancement." In 2015 IEEE Industry Applications Society Annual Meeting. IEEE, 2015. http://dx.doi.org/10.1109/ias.2015.7356940.

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Rubio, Francisco Martinez, Margarita Robaina, Fco Alberto Campos, and Jose Villar. "Economic Impact of Investments in the Electricity Sector - A Hybrid General Equilibrium and Technological Analysis." In 2018 15th International Conference on the European Energy Market (EEM). IEEE, 2018. http://dx.doi.org/10.1109/eem.2018.8469850.

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Yılmazcan, Dilek, and Hasan Basri Cifci. "Corruption and its Effects on Macroeconomy." In International Conference on Eurasian Economies. Eurasian Economists Association, 2020. http://dx.doi.org/10.36880/c12.02418.

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This paper examines the issue of corruption and its effects on macroeconomy, especially on public expenditures, financing balance, investments, and savings. The issue is going to be discussed based on empirical evidence (such as CPI Reports and Indexes) regarding where and how the macroeconomic ingredients are sensitive to the corruption. The aim is to contribute unreconciled discussions from the perspective of economy of corruption. The corruption level is low in the developed countries where public spending or tax revenues are higher than national income; however, because of silent or weak structures of institutional control and fiscal transparency, the level of corruption is high in Turkey and Eurasian economies. Such difference has important macroeconomic impacts in those countries with higher levels of corruption. Public goods and services are inputs of private productive activities. States finance such inputs through taxes that are collected from taxpayers. If this financing process is influenced by corruption, efficiency of the public expenditures’ decreases. And, that causes a sharp decrease in the total amount of invested capital since the growing level of corruption jeopardizes the risk of making an investment. And, increase in the level of corruption negatively affects the general level of prices and lowers income per capita. Thus, it seems that higher level of corruption is in a negative relationship with the level of public investments, public revenues, savings, quality of public goods and services, efficiency of public investments and public financing balance.
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Koşan, Naime İrem, Sudi Apak, and Selahattin Sarı. "International Trade and Macro-Economic Policy in Eurasian Economies." In International Conference on Eurasian Economies. Eurasian Economists Association, 2016. http://dx.doi.org/10.36880/c07.01494.

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International trade is defined the exchange of goods, services, and capital among various countries and regions. Also the potential of imports and exports account for an important part of growth. On the other hand, total value of international trade in goods and services shows the countries’ integration into the world economy. In this paper we focused on to analyze the effects on imports and make inferences for Eurasian Countries. In this paper we aim to examine the relationship between imports and macro-economic indicators in 6 Eurasian economies. To analyze the relationship, we used panel data regression analysis. Data obtained from World Bank. The panel data covers 1996-2012 periods and 6 countries which named Kazakhstan, Russian Federation, Uzbekistan, Kyrgyz Republic, Azerbaijan and Turkmenistan. We predicted pooled, fixed effects and random effects panel data models using the Stata and analyzed them. The dependent variable is defined the imports in our model. It has been found that gross domestic savings, foreign direct investments and, and exports are statistically significant for this countries. The results found in this paper show that gross domestic savings has negative effects on imports. On the other hand, for this 6 countries foreign direct investments (inflow) and exports have positive effects on imports as we expected. It shows us the economic positions of Eurasian countries still depend on Russian Federation. Also, these findings have important policy implications for Eurasian Countries. Our interpretation of these findings is that, integration to world economy has generally positive effects on foreign direct investments for this countries.
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Başar, Selim, Murat Eren, and Gürkan Bozma. "The Relationships Between Private Pension System, Saving Rate and Current Deficit: An Application on OECD Countries." In International Conference on Eurasian Economies. Eurasian Economists Association, 2016. http://dx.doi.org/10.36880/c07.01683.

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Today developed and developing economies have many problems. Some of these problems are created by global conjuncture and the rest of them are originated by problems which can be seen in some specific economies. One of the most important problems of economies is low saving rate. Since low saving rate can cause through to inability to increase investments and inability to reduce current account deficit, to remain below potential growth. The governments which want to increase the level of savings may use the private pension system as a political tool to increase domestic savings and decrease current account deficit. In accordance with this development, the relationships between private pension system, savings rate and current account deficit have been examined by using panel causality test for 14 OECD countries over the period 2005-2014. The findings indicate that developments in the private pension system leads to improvement in the current account balance.
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Tse, Charles G., Benjamin A. Maples, and Frank Kreith. "The Use of Plug-In Hybrid Electric Vehicles for Peak Shaving." In ASME 2014 8th International Conference on Energy Sustainability collocated with the ASME 2014 12th International Conference on Fuel Cell Science, Engineering and Technology. American Society of Mechanical Engineers, 2014. http://dx.doi.org/10.1115/es2014-6443.

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This article is a feasibility analysis of using the batteries in Plug-in Hybrid Electric Vehicles (PHEVs) for peak shaving. The analysis focuses on energy availability of the PHEV fleet as well as the financial savings to the utilities by analyzing different charging scenarios and circuitry. The energy availability and the financial savings are heavily dependent on the location and availability of charging stations. Three charging scenarios are analyzed: charging is possible at any time; cars can only be charged overnight; charging can be done overnight and twice during the day at the place of work for cars that are used for commuting. The major findings of the study are that charging only overnight will not provide sufficient energy when needed, but both other charging mechanisms can provide effective peak shaving. The charging anytime would require funding a large number of charging station, but charging overnight and at work could be accomplished with relative minor financial investments. The savings from peak shaving could be used for incentives to offset the extra cost of batteries in plug-in electric vehicles.
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McDonald, Margot, Stacey White, Clare Olsen, Jeff Landreth, Katie Worden, Lisa Hayden, and Ted Hyman. "The Campus as a Living Laboratory: Post-Occupancy Evaluation and a Digital Repository as a Teaching Tool." In AIA/ACSA Intersections Conference. ACSA Press, 2015. http://dx.doi.org/10.35483/acsa.aia.inter.15.5.

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In 2013-14, the California State University system funded 23 grants on 14 campuses in an effort to spur innovation in sustainability. The funding for these grants came from leveraging $250,000 of system-wide resources slated for energy efficiency improvements towards the support of educational initiatives that bridged facilities and the academy2. The intent of this initiative was to inspire applied research that tied teaching and learning to campus buildings, landscapes, and infrastructure in ways that would inform future project investments related to cost and energy savings as well as sustainability practices and increase the understanding of facility performance while utilizing high-impact educational practices.
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Reports on the topic "Equilibrium of savings and investments"

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Metcalf, Gilbert, and Kevin Hassett. Measuring the Energy Savings from Home Improvement Investments: Evidence from Monthly Billing Data. Cambridge, MA: National Bureau of Economic Research, June 1997. http://dx.doi.org/10.3386/w6074.

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Banerjee, Abhijit, Xin Meng, Tommaso Porzio, and Nancy Qian. Aggregate Fertility and Household Savings: A General Equilibrium Analysis using Micro Data. Cambridge, MA: National Bureau of Economic Research, April 2014. http://dx.doi.org/10.3386/w20050.

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Bolin, Kristian, and Bjorn Lindgren. The Double Facetted Nature of Health Investments - Implications for Equilibrium and Stability in a Demand-for-Health Framework. Cambridge, MA: National Bureau of Economic Research, January 2012. http://dx.doi.org/10.3386/w17789.

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Jaramillo, María. Transforming Remittances into Savings and Investments: The Case of Bancolombia and the Financial Inclusion of Remittance Recipient Families in Colombia. Inter-American Development Bank, August 2016. http://dx.doi.org/10.18235/0000390.

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Rosenzweig, Mark, and Christopher Udry. Assessing the Benefits of Long-Run Weather Forecasting for the Rural Poor: Farmer Investments and Worker Migration in a Dynamic Equilibrium Model. Cambridge, MA: National Bureau of Economic Research, May 2019. http://dx.doi.org/10.3386/w25894.

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Frisancho, Verónica, and Martín Valdivia. Savings Groups Reduce Vulnerability, but Have Mixed Effects on Financial Inclusion. Inter-American Development Bank, December 2020. http://dx.doi.org/10.18235/0002910.

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This paper evaluates the impact of the introduction of savings groups on poverty, vulnerability, and financial inclusion outcomes in rural Peru. Using a cluster randomized control trial and relying on both survey and administrative records, we investigate the impact of savings groups after more than two years of exposure. We find t hat savings groups channel expensive investments such as housing improvements and reduce households' vulnerability to idiosyncratic shocks, particularly among households in poorer districts. The treatment also induces changes in households labor allocation choices: access to savings groups increases female labor market participation and, in poorer areas, it fosters greater specialization in agricultural activities. Access to savings groups also leads to a four-percentage point increase in access to credit among women, mainly driven by access to the groups loans. However, the introduction of savings groups has no impact on the likelihood of using formal financial services.On the contrary, it discourages access to loans from formal financial institutions and microfinance lenders among the unbanked.
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Quak, Evert-jan. The Link Between Demography and Labour Markets in sub-Saharan Africa. Institute of Development Studies (IDS), January 2020. http://dx.doi.org/10.19088/k4d.2021.011.

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This rapid review synthesises the literature from academic, policy, and knowledge institution sources on how demography affects labour markets (e.g. entrants, including youth and women) and labour market outcomes (e.g. capital-per-worker, life-cycle labour supply, human capital investments) in the context of sub-Saharan Africa. One of the key findings is that the fast-growing population in sub-Saharan Africa is likely to affect the ability to get productive jobs and in turn economic growth. This normally happens when workers move from traditional (low productivity agriculture and household businesses) sectors into higher productivity sectors in manufacturing and services. In theory the literature shows that lower dependency ratios (share of the non-working age population) should increase output per capita if labour force participation rates among the working age population remain unchanged. If output per worker stays constant, then a decline in dependency ratio would lead to a rise in income per capita. Macro simulation models for sub-Saharan Africa estimate that capital per worker will remain low due to consistently low savings for at least the next decades, even in the low fertility scenario. Sub-Saharan African countries seem too poor for a quick rise in savings. As such, it is unlikely that a lower dependency ratio will initiate a dramatic increase in labour productivity. The literature notes the gender implications on labour markets. Most women combine unpaid care for children with informal and low productive work in agriculture or family enterprises. Large family sizes reduce their productive labour years significantly, estimated at a reduction of 1.9 years of productive participation per woman for each child, that complicates their move into more productive work (if available). If the transition from high fertility to low fertility is permanent and can be established in a relatively short-term period, there are long-run effects on female labour participation, and the gains in income per capita will be permanent. As such from the literature it is clear that the effect of higher female wages on female labour participation works to a large extent through reductions in fertility.
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Government Savings Bank of New South Wales - Sydney (Head Office) - Chief Accountant's Department - Investments - Accrued Interest Register - Savings Bank Department - 1918 - 1928. Reserve Bank of Australia, March 2021. http://dx.doi.org/10.47688/rba_archives_2006/22045.

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Government Savings Bank of New South Wales - Sydney (Head Office) - Chief Accountant's Department - Investments - Accrued Interest Register - Savings Bank Department (Loose Leaf System) - 1928-1931. Reserve Bank of Australia, March 2021. http://dx.doi.org/10.47688/rba_archives_2006/22046.

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Government Savings Bank of New South Wales - Sydney (Head Office) - Chief Accountant's Department - Investments Ledgers (Loose Leaf System) - 1914-1919. Reserve Bank of Australia, March 2021. http://dx.doi.org/10.47688/rba_archives_2006/22048.

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