EconPapers    
Economics at your fingertips  
 

Current Accounts in the Long Run and the Intertemporal Approach: A Panel Data Investigation

Mario Cerrato, Huseyin Kalyoncu, Naveed Hassan Naqvi and Christopher Tsoukis ()

The World Economy, 2015, vol. 38, issue 2, 340-359

Abstract: type="main" xml:id="twec12152-abs-0001">

This paper is a theory-based study of the long-run determinants of the current account (CA). For many OECD economies after the Second World War, there has been more long-run variation in the CA data than is emphasised by a ‘Permanent Income’ version of the intertemporal approach that is based on consumption-smoothing and that allows only transitory CA imbalances. A theoretical model of the CA is developed, based on the ‘broader’ variant of the intertemporal approach that stresses the long-term component of the CA. We find that some key theoretical predictions hold, while others fail, validating the approach but also pointing to its limitations.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1111/twec.2015.38.issue-2 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:bla:worlde:v:38:y:2015:i:2:p:340-359

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-08-19
Handle: RePEc:bla:worlde:v:38:y:2015:i:2:p:340-359