RDP 2005-09: The US Current Account Deficit: A Re-Examination of the Role of Private Saving Equation (15)

Y t + 1 W = Y t + 1 V + Y t + 1 * V = P t + 1 C t + 1 + P t + 1 * C t + 1 * = R t + 1 ( β P t C t + β * P t * C t * ) = R t + 1 ( β η t + β * ( 1 − η t ) ) Y t W , MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGzb Waa0baaSqaaiaadshacqGHRaWkcaaIXaaabaGaam4vaaaakiabg2da 9iaadMfadaqhaaWcbaGaamiDaiabgUcaRiaaigdaaeaacaWGwbaaaO Gaey4kaSIaamywamaaDaaaleaacaWG0bGaey4kaSIaaGymaaqaaiaa cQcacaWGwbaaaOGaeyypa0JaamiuamaaBaaaleaacaWG0bGaey4kaS IaaGymaaqabaGccaWGdbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaa beaakiabgUcaRiaadcfadaqhaaWcbaGaamiDaiabgUcaRiaaigdaae aacaGGQaaaaOGaam4qamaaDaaaleaadaWgaaadbaGaamiDaiabgUca RiaaigdaaeqaaaWcbaGaaiOkaaaakiabg2da9iaadkfadaWgaaWcba GaamiDaiabgUcaRiaaigdaaeqaaOWaaeWaaeaacqaHYoGycaWGqbWa aSbaaSqaaiaadshaaeqaaOGaam4qamaaBaaaleaacaWG0baabeaaki abgUcaRiabek7aInaaCaaaleqabaGaaiOkaaaakiaadcfadaqhaaWc baGaamiDaaqaaiaacQcaaaGccaWGdbWaa0baaSqaaiaadshaaeaaca GGQaaaaaGccaGLOaGaayzkaaaabaGaeyypa0JaamOuamaaBaaaleaa caWG0bGaey4kaSIaaGymaaqabaGcdaqadaqaaiabek7aIjabeE7aOn aaBaaaleaacaWG0baabeaakiabgUcaRiabek7aInaaCaaaleqabaGa aiOkaaaakmaabmaabaGaaGymaGGaaiab=jHiTiabeE7aOnaaBaaale aacaWG0baabeaaaOGaayjkaiaawMcaaaGaayjkaiaawMcaaiaadMfa daqhaaWcbaGaamiDaaqaaiaadEfaaaGccaGGSaaaaaa@845C@