The “savings gap” of European Corporations: A first look at the available data
In this paper we present an historical analysis of the savings gap and we discuss the way in which it has been financed. This first analysis is conducted at the level of the corporate sector. We propose a classification of the available information from company-level cash-flow statements that is consistent with the macroeconomic flow-of-funds framework and we use both frameworks to describe the business cycle behaviour of the savings gap. We restrict attention to company-level information to discuss the way in which the gap is financed across different countries, sectors and size classes and we conclude.