الحساب الجاري في المدى البعيد عبر نموذج داخلي الزمن

The Current Account in the Long Run through the Intertemporal Model

Hassan Ghassan () and Essam H. Al-Jefri

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the current account in the intertemporal model framework. Based on Obstfeld and Rogoff’s book (1996), we aim to model the ratio of the current account to GDP explicitly in the long run. Also, we criticize the tautological approach in the paper of Cerrato et al. (2014) which supposes a strong hypothesis that the output growth is the sum of the population growth and the per-capita GDP growth. This hypothesis leads to the identical equation of the ratio current account to GDP expressed by level or per capita. In this paper, we consider the overlapping generations to determine precisely the equation of the per-capita current account using the relevant variables. Then, this model appears more interesting and testable. It allows to verify the validity of the intertemporal model of the current account through the semi-elasticity of the ratio of per-capita current account to the per-capita GDP to the per-capita GDP growth or the per-capita consumption growth.

Keywords: Current account; Intertemporal Model; Long-run; Per-capita GDP; Consumption. (search for similar items in EconPapers)
JEL-codes: E21 F41 F62 (search for similar items in EconPapers)
Date: 2015-08-15
New Economics Papers: this item is included in nep-mac
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https://mpra.ub.uni-muenchen.de/66527/1/MPRA_paper_66527.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/80392/1/MPRA_paper_66527.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/80392/8/MPRA_paper_80392.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:66527

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