The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States / Andrew Atkeson, Jonathan Heathcote, Fabrizio Perri.

Format:

Book

Author/Creator:

Atkeson, Andrew.

Contributor:

National Bureau of Economic Research.

Heathcote, Jonathan.

Perri, Fabrizio.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29771.

NBER working paper series no. w29771

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

The U.S. net foreign asset position has declined sharply since 2007 and is currently negative 65 percent of U.S. GDP. This deterioration primarily reflects a U.S.-specific rise in corporate asset values that has inflated the value of U.S. equity liabilities to the rest of the world. To interpret these trends we develop an international macro finance model of flows, stocks, asset valuations, the current account, and the net foreign asset position. We find that the welfare impact of rising asset values for a representative U.S. household has been quite negative given extensive foreign ownership of U.S. corporate equity.

Notes:

Print version record

February 2022.