RDP 2005-09: The US Current Account Deficit: A Re-Examination of the Role of Private Saving
Equation
C
0
[
1
+
β
1
ρ
R
1
1
−
ρ
ρ
+
β
2
ρ
R
1
1
−
ρ
ρ
R
2
1
−
ρ
ρ
+
…
]
=
C
0
[
1
+
β
(
Y
1
W
Y
0
W
)
1
−
ρ
+
β
2
(
Y
2
W
Y
0
W
)
1
−
ρ
+
…
]
.
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