Financial integration, entrepreneurial risk and global dynamics

• 成果类型: Article
• 署名作者: Angeletos, George-Marios; Panousi, Vasia
• 署名单位: Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2011.02.001
• 发表日期: 2011
• 页码: 863-896
• 关键词: financial integration; Capital-account liberalization; incomplete markets; idiosyncratic risk; entrepreneurship; Current-account deficits; Global imbalances

摘要

How does financial integration impact capital accumulation, current-account dynamics, and cross-country inequality? We investigate this question within a two-country, general-equilibrium, incomplete-markets model that focuses on the importance of idiosyncratic entrepreneurial risk-a risk that introduces, not only a precautionary motive for saving, but also a wedge between the interest rate and the marginal product of capital. Our contribution is to show that this friction provides a simple explanation for the emergence of global imbalances, a resolution to the empirical puzzle that capital often fails to flow from the rich or slow-growing countries to the poor or fast-growing ones, and a set of policy lessons regarding the intertemporal costs and benefits of capital-account liberalization. (C) 2011 Elsevier Inc. All rights reserved.