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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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Citations: View citations in EconPapers (6)

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DOI: 10.1080/00036840902845434

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