New Evidence on US Current Account Sustainability

Juncal Cuñado (), Luis Gil-Alana and Fernando Pérez de Gracia ()

International Journal of Business and Economics, 2008, vol. 7, issue 1, 1-21

Abstract: This paper deals with the sustainability of the US current account using fractional integration. We examine nominal and real exports and imports and their corresponding values deflated by GNP. The results show that only the variables deflated by GNP may contain unit roots, while nominal and real exports and imports are integrated of order d with d>1. In addition, the differences between export and imports are also nonstationary. The possibility of structural breaks is also considered.

Keywords: current account; fractional integration; long memory (search for similar items in EconPapers)
JEL-codes: C22 F32 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ijb:journl:v:7:y:2008:i:1:p:1-21

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