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International Futures Help System

Firm Savings

The agent class that is least developed within IFs as a class with behavioral relationships, and that instead relies on aggregated relationships is the firm (as discussed around the production function). Even if the basic behavior of the firm is simplified, its accounts must still balance. Firm savings is equal to firm income minus net transfers to households and government. In addition, there are positive net transfers to the rest of the world in the form of outward FDI flows (XFDIFOUT), portfolio flows (XPORTFOUT), and subscriptions to the World Bank (XWBSUBF) by net contributors.