蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States
蝌蚪网 Review
vol. 115,
no. 7, July 2025
(pp. 2151–2206)
Abstract
The US net foreign asset position declined sharply after 2007, reaching negative 60 percent of GDP by the third quarter of 2023. This deterioration primarily reflects a US-specific rise in corporate asset values that inflated the value of US 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 US household has been quite negative given extensive foreign ownership of US corporate equity.Citation
Atkeson, Andrew, Jonathan Heathcote, and Fabrizio Perri. 2025. "The End of Privilege: A Reexamination of the Net Foreign Asset Position of the United States." 蝌蚪网 Review 115 (7): 2151–2206. DOI: 10.1257/aer.20230732Additional Materials
JEL Classification
- F32 Current Account Adjustment; Short-term Capital Movements
- F21 International Investment; Long-term Capital Movements
- F40 Macroeconomic Aspects of International Trade and Finance: General
- G15 International Financial Markets