Front Matter Page
Research Department
Contents
I. INTRODUCTION
II. THE LITERATURE
III. THE DATA
A. Rise in Global Income Inequality
B. Rise in Global Current Account Imbalances
C. Rise in Global Household Indebtedness
D. Econometric Analysis
IV. THE MODEL
A. Home Investors
B. Home Workers
C. Home Banks
D. Home Firms
E. Foreign Agents
F. Equilibrium
V. SIMULATION RESULTS
A. Calibration
B. Computational Methodology
C. Increased Inequality
D. Increased Inequality Accompanied by Financial Liberalization
E. Emerging Economies - The Role of Credit Constraints
VI. CONCLUSION
References
Figures
1. Top 5 Percent Income Shares in the Cross-Section
2. Global Current-Account-to-GDP Ratios (1980-2007)
3. Changes in Current Accounts and Top Income Shares (1980-2000)
4. Net Lending/Borrowing by Households and Non-Profit
5. Household Net Saving Rate
6. Increased Inequality
7. Increased Inequality Accompanied by Financial Liberalization
8. Emerging Economies - The Role of Credit Constraints
Tables
1. Variable Definition
2. GMM Estimation (Dependent Variable: CA/GDP)
3. ARDL Estimation (Dependent Variable: CA/GDP)