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), pp. 148-163. (doi:10.1111/1468-0297.00625).

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Description/Abstract

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.

Item Type: Article
Digital Object Identifier (DOI): doi:10.1111/1468-0297.00625
ISSNs: 0013-0133 (print)
Subjects:
ePrint ID: 32957
Date :
Date Event
2001Published
Date Deposited: 19 May 2006
Last Modified: 16 Apr 2017 22:18
Further Information:Google Scholar
URI: http://eprints.soton.ac.uk/id/eprint/32957

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