Cerrato, M. , Kalyoncu, H., Hassan Naqvi, N. and Tsoukis, C. (2015) Current accounts in the long run and the intertemporal approach: a panel data investigation. World Economy, 38(2), pp. 340-359. (doi: 10.1111/twec.12152)
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Abstract
This paper is a theory-based study of the long-run determinants of the current account (CA). For many OECD economies after WWII, there has been more long-run variation in the CA data than is emphasised by a ‘Permanent Income’ version of the intertemporal approach that is based on consumption-smoothing and that allows only transitory CA imbalances. A theoretical model of the CA is developed, based on the ‘broader’ variant of the intertemporal approach that stresses the long-term component of the CA. We find that some key theoretical predictions hold, while others fail, validating the approach but also pointing to its limitations.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Cerrato, Professor Mario |
Authors: | Cerrato, M., Kalyoncu, H., Hassan Naqvi, N., and Tsoukis, C. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | World Economy |
Publisher: | Wiley |
ISSN: | 0378-5920 |
ISSN (Online): | 1467-9701 |
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