The relative dynamics of the current account and investment in the G7-Economies
Hoffmann, Mathias (2001) The relative dynamics of the current account and investment in the G7-Economies. The Economic Journal, 111, (471), 148-163. (doi:10.1111/1468-0297.00625).
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This paper contributes to the empirics of the intertemporal approach to the current account. We use a cointegrated VAR framework to identify permanent and transitory components of country-specific and global shocks. Our approach allows us to investigate empirically the sensitivity to persistence implied by many forward-looking models and our results shed new light on the excess volatility of investment encountered by Glick and Rogoff (1995). In G7 data, we find the relative current-account and investment response to be in line with the intertemporal approach.
|Digital Object Identifier (DOI):||doi:10.1111/1468-0297.00625|
|Subjects:||H Social Sciences > HB Economic Theory|
|Divisions:||University Structure - Pre August 2011 > School of Social Sciences > Economics
|Date Deposited:||19 May 2006|
|Last Modified:||06 Aug 2015 02:30|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
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