A reassessment of the twin deficits relationship
Mark Holmes ()
Applied Economics Letters, 2010, vol. 17, issue 12, 1209-1212
Abstract:
This article provides new evidence on the relationship between the United States budget and current account deficits. Using a testing procedure advocated by Bierens, both deficits are found to be stationary around a nonlinear deterministic trend and are co-trended insofar as they share a common nonlinear deterministic trend.
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:17:y:2010:i:12:p:1209-1212
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DOI: 10.1080/00036840902845434
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