Resumen de Public debt, saving-investment-current account dynamics, and capital mobility in OECD countries, 1999-2013
Are countries with higher relative public debt levels also characterized by lower capital mobility? This paper attempts to address this question empirically by applying an error correction model of saving-investment-current account to data from 27 OECD countries over the 1999-2013 interval. We classify countries into five groups on the basis of the relative size of public debt. Our empirical results appear to support a stable current account which is indicative of low capital mobility or binding credit constraints when the public debt is high relative to GDP
