Investment and the Current Account in the Short Run and the Long Run

James Nason () and John H. Rogers ()

UBC Departmental Archives from UBC Department of Economics

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 empiriclaly structural shocks from vestor 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 (search for similar items in EconPapers)
JEL-codes: F40 F41 (search for similar items in EconPapers)
Date: 2000

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Related works:
Working Paper: Investment and the current account in the short run and the long run (1999)
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)
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Persistent link: http://EconPapers.repec.org/RePEc:ubc:bricol:00-13

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