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The purpose of this paper is to study the role of public and private imbalances in the cyclicality of the current account balance in a sample of advanced and developing countries. Within developing countries, the evidence does not establish the dependency of private investment on private savings and private consumption is the main driver of the saving/investment balance. In contrast, private savings seem to be better mobilized to finance private investment and the latter is the main driver of the saving/investment balance in advanced countries. Deterioration in the current account balance in response to higher private consumption could be detrimental to growth and external stability. In contrast, an investment strategy that promotes growth is likely to attract financial flows and reduce the risk of a widening current account deficit on external stability.

The paper studies determinants of the current account deficit. It studies current account fluctuations in the short‐run and explains these fluctuations by analyzing movements in the underlying components: public and private savings as well as investments and resulting imbalances. Of particular interest is the interaction between the government budget deficit, the private saving/investment balance, and the current account balance.

Using time‐series estimates, co‐movements indicate that fluctuations in the current account balance in many advanced countries appear to be driven by private investment that determines cyclicality in imports. In contrast, cyclicality in the current account appears to be driven by private consumption that determines fluctuations in imports in many developing countries. In general, fluctuations in the government budget deficit are mostly driven by government investment and fluctuations in the private saving/investment balance are mostly driven by fluctuations in private investment. Further, fluctuations in the current account balance appear to be mostly driven by fluctuations in the private saving/investment balance.

The paper explains the dynamics of the current account in relation to developments in public and private imbalances and its underlying components. It shows the effects of changes in the budget deficit and its underlying components on cyclicality in the current account. Similarly, cyclicality in the current account balance with cyclical movements in private savings and investment is studied, along with which factors affect the components of the current account balance. In particular, the paper establishes which components of the current account significantly respond to the cyclical changes in macroeconomic variables.

David Gordon was, at once, a highly creative economist with an enormous range of interests, while also uncompromising in maintaining rigorous research standards. He focused equally on hard-core academic research and pressing policy issues. He was also openly committed to the political left, with this commitment animating all his work. One distinctive feature of Gordon’s work was his keenness to dive into the most important topics engaging mainstream economists and to inject explicitly left political economy perspectives into these mainstream debates. This paper focuses on two important examples of Gordon’s contributions that examine front-and-center mainstream macroeconomics questions. The first is the relationship between aggregate saving and investment. The second is the development of the concept of the “natural rate of unemployment.” The evolution of mainstream research on these two questions played a critical role in overturning what had been, over the first two post-World War II decades, a prevailing Keynesian/social democratic consensus, at both the levels of analytic economics as well as economic policy. As the paper reviews, Gordon challenges the analytic findings and policy implications of these perspectives at their core. Gordon’s own basic premises and results are straightforward. He argues that, in fact, investment decisions, not saving rates, are the main driver of economic activity in capitalist economies and that operating capitalist economies at something akin to genuine full employment – that is, in the range of 2–3 percent official unemployment – is a realistic goal. As such, these papers by Gordon contribute significantly toward envisioning a post-neoliberal social structure of accumulation that is committed to the egalitarian principles that were central to Gordon’s life work.

The purpose of this paper is to gain more insight into the relationship between off‐farm employment of rural households and water‐saving investments and irrigation water use in rural China.

Data from a survey held among 317 households in Minle County, Zhangye City, Gansu Province, covering the year 2007, are used for a probit analysis explaining investments in land leveling and for an ordinary least squares regression explaining irrigation water use per mu.

Off‐farm employment is not significantly related to investments in land leveling, but is negatively associated with water use per mu. In addition, the paper finds that the share of migrant students in a household is positively related to investments in land leveling. The results indicate the presence of major factor market imperfections in the research area, and confirm that the new economics of labor migration (NELM) approach is more relevant for analyzing off‐farm employment and agricultural production in China than neoclassical economic theory.

The paper expands the NELM approach towards the analysis of water‐saving investments and water use. In addition, it distinguishes migrant students as an important category that should be taken into account in analyzing farm household decisions making.

To study the dynamic relationship between saving‐investment in Greece during a period of structural changes with policy regime changes employing different methods of estimation.

Different empirical methods are used to estimate the time varying savings retention coefficient. A recursive OLS, rolling OLS, Kalman filter estimator and Markov switching regime modeling (MS‐R) are applied which have the advantage to capture the dependence structure of the series both in terms of constant and variance.

The empirical evidence suggests that the degree of correlation between saving and investment weakens during financial liberalization periods.

Conclusions drawn from this analysis could be useful for the analysis of other medium‐sized economies.

The paper employs four different estimation models to test the stability of the estimated coefficient. The MS‐R is used, for the first time, to take into account the policy regime changes during the estimation period.

The purpose of this study is to examine two issues, namely the degree of current account deficit (CAD) sustainability and the degree of capital mobility.

The sample for this study comprises 24 Latin American and Caribbean countries, including three regional agreements: Andean Community, MERCOSUR (Mercado Común del Sur), and SICA (Central American Integration System). This study employs the dynamic common correlated effects mean group (DCCEMG) estimator in a panel data set to investigate the long-run relationship between savings and investment along with short-run dynamics.

The findings indicate that CAD is weakly sustainable in the Latin American and Caribbean region, MERCOSUR, and SICA, while CAD is strongly unsustainable in the Andean Community. The sub-period analysis reveals that CAD has been adversely affected by the 2008 crisis. However, in the post-crisis period, CAD has been slowly decreasing in the Latin American and Caribbean region and Andean Community, whereas CAD has continued increasing in MERCOSUR and SICA. Further, the estimates of error-correction terms and short-run coefficients indicate that the Andean Community and MERCOSUR observe a higher degree of long-run and short-run capital mobility than SICA.

The results carry fundamental implications for policy-making processes aimed at maintaining sustainable CADs.

This study gives an alternative interpretation of the “Feldstein-Horioka” coefficient in terms of CAD sustainability and analyses the saving–investment relationship in light of Chudik and Pesaran (2015).

Motivated by consumers' concerns about water resources, this paper studies the interactive impact of advertising efforts and water-saving on corporate profits in apparel supply chains. Moreover, this study attempts to find an effective way to improve the profit of supply chain members under different game scenarios. Therefore, this study explores the game scenarios with considering the cost-sharing contract.

This paper constructs two basic game models considering different market power in the apparel supply chains, and explores the Pareto improvement combined with cost-sharing contracts based on the basic models. Furthermore, this study extends the models by considering cost-saving and non-linear demand.

In this paper, it can be found that advertising efforts and water-saving have complex interactive relationships. Counter-intuitively, the increase in advertising efforts may increase water savings. Furthermore, it presents a Pareto improvement when considering cost-sharing contracts, and both the manufacturer and the retailer's profits may improve simultaneously. Moreover, it does not affect the main conclusions when consider the effects of cost-saving and non-linear demand.

Although some important findings have been reached, this paper can be extended in many ways in the future. For example, the coordination mechanism among supply chain members can be considered and the fair distribution of profits can be studied. Moreover, the influence of the government policies on the optimal strategy, as well as changes in social welfare can be considered.

This study offers supply chain members the guidelines on coordinating water-saving investment and advertising efforts which provided new insight into the interaction of these two factors in the apparel supply chains. Moreover, it can provide a coordination mechanism for the supply chain members to improve their profits.

This paper explores the interactive relationship between water-saving and advertising efforts. It can not only save more water resources but also enable consumers to enjoy more environmentally friendly apparel products.

The current literature mainly focuses on the impact of advertising efforts on firm profit. However, this paper studies the interaction between advertising efforts and water-saving in apparel supply chains. Furthermore, this study explores the optimal pricing strategies and Pareto improvement by considering cost-sharing contracts. It can provide theoretical and practical guidance for the decision-maker in deciding on advertising and water-saving investment.

In order to encourage the high-water-consumption (HWC) manufacturers to carry out water-saving transformation relying on self-strength or outsourcing to a water-saving service company (WSSC) during production processes, government subsidies are provided according to water-saving efforts (WSE) or investment cost. In this context, the authors derive the participant's equilibrium decisions and the manufacturer's water-saving strategy. Additionally, the effects of subsidies on WSE and stakeholders' profits are discussed.

Mathematical models including optimization model and Stackelberg game model are constructed under different subsidy schemes.

The study finds that (1) there exists a threshold related to the subsidy coefficient for the HWC manufacturer when choosing between self-saving and outsourcing-saving. (2) When the technological competitive advantage between WSSC and manufacturer is within a certain range, government's subsidy promotes HWC enterprises to choose outsourcing-saving. (3) Given a water-saving mode, subsidy on investment cost is more effective for the government to achieve more environmental performance.

First, subsidy endogeneity can be considered to explore the optimal interval for government subsidies to maximize social welfare. Second, in outsourcing-saving, other types of contract can be discussed. Another extension is about model uncertainties. Finally, other policies on improving water efficiency can be also examined.

The paper includes implication for HWC manufacturers to select the best water-saving mode under subsidy, and it allows policymakers to understand the efficiency of proposed subsidies.

Decisions on water-saving efforts, selection of water-saving modes and operational planning are also regarded as business strategies in the paper. Particularly, the influences of different government subsidies are also considered and compared.

The scientific correspondence between Harrod and Robertson was initiated by Harrod’s criticism of Robertson’s Banking Policy and the Price Level (1926).⁷ Harrod first wrote on 18 May 1926 (letter 2) raising at once the following “salient point”: Much of your argument depends on the view that justifiable expansions and contractions as defined by you are desirable. Why are they desirable? You give reasons on p. 22 why you think some instability in output desirable. But the reasons mentioned there (and I can’t find any others) don’t seem particularly directed to show that the special form of instability constituted by the so-called “justifiable” expansions and contractions is desirable. They seem to me to show that perhaps some instability, that, presumably, of less degree than we have been accustomed to in the past, is good, but by no means precisely how much is good. Thus, suppose the “hypothetical group member” or “the actual workman” of p. 19 were able to govern output according to their own self interest, there would still, according to the arguments of ch. 2, be some instability. Would not that be enough? Or if you want more, why stop at the “justifiable”? Why not have some of that due to “secondary” causes? It seems to me that you have been led away by purely aesthetic interests to identify that more moderate amount of instability which we really need (as shown on p. 22.) with that which we would get: (i) if secondary causes were removed; and (ii) if control of output stayed where it is now – in the hands of the entrepreneur. I don’t see how you can say to the banks more than “damp down fluctuation a bit, but leave some fluctuation, as that is healthful for the body economic”.He added two notes to his letter, in the first of which he commented upon the four proposed courses of policy outlined by Robertson on pp. 25–26 of his book. In the second note Harrod suggested that Robertson’s calculations in Appendix I to Ch. 5 of Banking Policy assumed the following behaviour of the public: (i) People do not allow for the effect of their withholding on the price level (this is reasonable). (ii) They are ignorant as the future course of inflation (or do nothing to meet it). (iii) On this basis they decide what withholding is necessary to restore H, decide that it would be too much effort to restore it at once, and…spread the restoration over K – 1 days. It so happens that by choosing K – 1 their 2 errors (or failures to take everything into account) cancel each other out, and they do effect the restoration in that time. If K or K – 2 had been chosen, this would not have been so.Harrod further argued that Robertson’s “so-called reasonable assumption of a restoration in K – 1 days is purely arbitrary,” and that “all this reasoning is rendered of doubtful value by the fact that we must suppose an alteration in view as to ‘the appropriate proportion between Real Hoarding and Real Income’ during the process of inflation. Not only will people not replenish H at once, but they may well voluntarily reduce it.”

Introduces Hicks, from the UK, and his classical upbringing, including his mathematical scholarships and Oxford. Looks at his early career as a lecturer at the London School of Economics and his development in the economics field. Concludes that Hicks was an original thinker, giving thanks to his immense contributions.

An insight into the motivations of personal savers is offered here, and five different types are identified. It is seen that there is often no clear‐cut line between “savings” and “investments”, and only an impressionistic inter‐pretation of the findings is possible. However, this gives valuable new insights for a more detailed investigation into personal saving behaviour. The framework and context of the UK personal saving/investment market is outlined.