A tractable model of precautionary reserves, net foreign assets, or sovereign wealth funds
- We model the motives for residents of a country to hold foreign assets, including the precautionary motive that has been omitted from much previous literature as intractable. Our model captures many of the principal insights from the existing specialized literature on the precautionary motive, deriving a convenient formula for the economy’s target value of assets. The target is the level of assets that balances impatience, prudence, risk, intertemporal substitution, and the rate of return. We use the model to shed light on two topical questions: The “upstream” flows of capital from developing countries to advanced countries, and the long-run impact of resorbing global financial imbalances
| Verfasserangaben: | Christopher D. Carroll, Olivier Jeanne |
|---|---|
| URN: | urn:nbn:de:hebis:30-68346 |
| Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2009,15 |
| Schriftenreihe (Bandnummer): | CFS working paper series (2009, 15) |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2009 |
| Jahr der Erstveröffentlichung: | 2009 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 14.08.2009 |
| Freies Schlagwort / Tag: | Buffer Stock Saving; Foreign Exchange Reserves; Net Foreign Assets; Small Open Economy Models; Sovereign Wealth Funds |
| HeBIS-PPN: | 214928527 |
| Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Klassifikation: | C Mathematical and Quantitative Methods / C6 Mathematical Methods and Programming / C61 Optimization Techniques; Programming Models; Dynamic Analysis |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
