On the stationarity of current account deficits in the European Union

Mark Holmes (), Theodore Panagiotidis and Jesus Otero

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ an AR-based bootstrap approach to the Hadri (2000) test. While there is only mixed evidence that current account stationarity applies when examining individual countries, this does not appear to be case when considering panels comprising both EU and non-EU members.

Keywords: Heterogeneous dynamic panels; current account stationarity; mean reversion; panel stationarity test. (search for similar items in EconPapers)
JEL-codes: C33 F32 F41 (search for similar items in EconPapers)
Date: 2009-12, Revised 2009-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/dp1809.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: On the Stationarity of Current Account Deficits in the European Union (2010)
Working Paper: On the Stationarity of Current Account Deficits in the European Union (2010)
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:mcd:mcddps:2009_18

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis () and Anastasia Litina ().