Investment and the current account in the short run and the long run

James Nason () and John H. Rogers ()

No 647, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Theoretical models of the relationship between investment and the current account impose restrictions on the joint dynamic behavior of these variables. These restrictions come in two forms. One imposes causal orderings on investment and the current account. The other restriction concerns the permanent responses of these variables to different shocks. We use these restrictions to identify empirically structural shocks from vector autoregressions of investment and the current account for Canada. Under certain identifications, our results support the implications of the intertemporal, small open economy model. However, these results are sensitive to perturbations of the identifications.

Keywords: Investments; Balance of payments (search for similar items in EconPapers)
Date: 1999
View list of references View citations in EconPapers

Downloads: (external link)
http://www.federalreserve.gov/pubs/ifdp/1999/647/default.htm (text/html)
http://www.federalreserve.gov/pubs/ifdp/1999/647/ifdp647.pdf (application/pdf)

Related works:
Working Paper: Investment and the Current Account in the Short Run and the Long Run (2000)
Working Paper: Investment and the Current Account in the Short Run and the Long Run (2000)
Journal Article: Investment and the Current Account in the Short Run and the Long Run (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fip:fedgif:647

Ordering information: This working paper can be ordered from
http://www.federalreserve.gov/pubs/ifdp/order.htm

Access Statistics for this paper

More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)
Contact information at EDIRC.
Series data maintained by Diane Rosenberger ().