Global Versus Country-Specific Productivity Shocks and the Current Account

Reuven Glick and Kenneth Rogoff

No 4140, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The intertemporal approach to the current account is often regarded as theoretically elegant but of limited empirical significance. This paper derives highly tractable current account and investment specifications that we estimate without resorting to calibration or simulation methods. In time-series data for eight industrialized countries, we find that country-specific productivity shocks tend to worsen the current account, whereas global shocks have little effect. Both types of shock raise investment. It is a puzzle, however, for the intertemporal model that long-lasting local productivity shocks have a larger impact effect on investment than on current account.

Date: 1992-08
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Journal of Monetary Economics 35 (February 1995), pp 159-192.

Downloads: (external link)
http://www.nber.org/papers/w4140.pdf (application/pdf)

Related works:
Journal Article: Global versus country-specific productivity shocks and the current account (1995)
Working Paper: Global versus country-specific productivity shocks and the current account (1993)
Working Paper: Global Versus Country-Specific Productivity Shocks and the Current Acocount (1993)
Working Paper: Global versus country-specific productivity shocks and the current account (1992)
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:4140

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4140

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().