Travel hysteresis in the US current account after the mid-1980s

Roberto Meurer (), Guilherme Moura () and Sergio Da Silva ()
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Roberto Meurer: Federal University of Santa Catarina, Brazil
Guilherme Moura: University of Kiel, Germany

Economics Bulletin, 2005, vol. 14, issue 2, pages 1-10

Abstract: Following the real appreciation of the US dollar in the first half of the 1980s, travel expenditures in the current account soared. Employing standard regression techniques as well as Markov-switching regime analysis we show that such expenditures did not return to their pre-appreciation levels thereafter. The permanent increase suggests the presence of travel hysteresis in the US current account after the mid-1980s.

Keywords: current account; exchange rate; travel hysteresis; US economic history (search for similar items in EconPapers)
JEL-codes: N1 F3 (search for similar items in EconPapers)
Date: 2005-12-06
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Working Paper: Travel Hysteresis in the US Current Account After the Mid-1980s (2005)
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