Saving, productivity and national income: a discrete-time geometric framework

Makin, Anthony J. (2002) Saving, productivity and national income: a discrete-time geometric framework. Japan And The World Economy, 14 2002: 233-241. doi:10.1016/S0922-1425(01)00076-7

Author Makin, Anthony J.
Title Saving, productivity and national income: a discrete-time geometric framework
Journal name Japan And The World Economy   Check publisher's open access policy
ISSN 0922-1425
Publication date 2002-01-01
Sub-type Article (original research)
DOI 10.1016/S0922-1425(01)00076-7
Volume 14
Issue 2002
Start page 233
End page 241
Total pages 9
Editor R. Sato
Place of publication The Netherlands
Publisher Elsevier
Language eng
Subject C1
340208 Macroeconomics (incl. Monetary and Fiscal Theory)
720199 Macroeconomic issues not elsewhere classified
Abstract This paper proposes an alternative geometric framework for analysing the inter-relationship between domestic saving, productivity and income determination in discrete time. The framework provides a means of understanding how low saving economies like the United States sustained high growth rates in the 1990s whereas high saving Japan did not. It also illustrates how the causality between saving and economic activity runs both ways and that discrete changes in national output and income depend on both current and previous accumulation behaviour. The open economy analogue reveals how international capital movements can create external account imbalances that enhance income growth for both borrower and lender economies. (C) 2002 Elsevier Science B.V. All rights reserved.
Keyword Economics
Capital Flows
National Income
Increasing Returns
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 1 times in Thomson Reuters Web of Science Article | Citations
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Created: Wed, 15 Aug 2007, 03:14:57 EST