Foreign Ownership of U.S. Safe Assets: Good or Bad? /
Favilukis, Jack.
Foreign Ownership of U.S. Safe Assets: Good or Bad? / Jack Favilukis, Sydney C. Ludvigson, Stijn Van Nieuwerburgh. - Cambridge, Mass. National Bureau of Economic Research 2014. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19917 . - Working Paper Series (National Bureau of Economic Research) no. w19917. .
February 2014.
The last 20 years have been marked by a sharp rise in international demand for U.S. reserve assets, or safe stores-of-value. What are the welfare consequences to U.S. households of these trends, or of a reversal? In a lifecycle model with aggregate and idiosyncratic risks, the young and oldest households may benefit substantially from such capital inflows, but middle-aged savers may suffer from greater exposure to systematic risk in equity and housing markets. Under the veil of ignorance, a newborn in the lowest wealth quantile is willing to forego 2.7% of lifetime consumption to avoid a large capital outflow.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Foreign Ownership of U.S. Safe Assets: Good or Bad? / Jack Favilukis, Sydney C. Ludvigson, Stijn Van Nieuwerburgh. - Cambridge, Mass. National Bureau of Economic Research 2014. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19917 . - Working Paper Series (National Bureau of Economic Research) no. w19917. .
February 2014.
The last 20 years have been marked by a sharp rise in international demand for U.S. reserve assets, or safe stores-of-value. What are the welfare consequences to U.S. households of these trends, or of a reversal? In a lifecycle model with aggregate and idiosyncratic risks, the young and oldest households may benefit substantially from such capital inflows, but middle-aged savers may suffer from greater exposure to systematic risk in equity and housing markets. Under the veil of ignorance, a newborn in the lowest wealth quantile is willing to forego 2.7% of lifetime consumption to avoid a large capital outflow.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.