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A New Meaure of the Korean Current Account

Author

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  • Eric O'N. Fisher

    (The Ohio State University)

  • YoungSoo Woo

    (Cornell University)

Abstract

We apply Fisher's (1994) concept of the aggregate generational current account to data from the Republic of Korea in the post-war era. A generation's net foreign assets is the present value of its expected net transfers from abroad, and the aggregate generational current account is the annual change in the sum of these accounts across all current and future generations. Although the conventional measure of the Korean current account shows a chronic deficit during this era, our measure indicates that expected military and economic transfers from abroad have actually created long periods of aggregate generational current account surpluses. Also, the aggregate generational current account is more volatile than the conventional current account for Korea.

Suggested Citation

  • Eric O'N. Fisher & YoungSoo Woo, 1994. "A New Meaure of the Korean Current Account," International Finance 9411001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpif:9411001
    Note: 22 pages
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    References listed on IDEAS

    as
    1. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1991. "Generational Accounts: A Meaningful Alternative to Deficit Accounting," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 55-110, National Bureau of Economic Research, Inc.
    2. Il SaKong, 1993. "Korea in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 29, January.
    3. Fisher, Eric O'N, 1995. "A New Way of Thinking about the Current Account," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 555-568, August.
    4. Cardarelli, Roberto & Sefton, James & Kotlikoff, Laurence J, 2000. "Generational Accounting in the UK," Economic Journal, Royal Economic Society, vol. 110(467), pages 547-574, November.
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    Cited by:

    1. Willem H. Buiter, 1997. "Generational Accounts, Aggregate Saving and Intergenerational Distribution," Economica, London School of Economics and Political Science, vol. 64(256), pages 605-626, November.

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    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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