Current Accounts and the Persistence of Global and Country-Specific Shocks: Is Investment really too Volatile?.

Using a small VAR of the current account and investment, we identify two categories of shocks: permanent vs. transitory and country-specific vs. global. Our approach involves only the most minimal identifying assumption. Using data from the G7n countries, we find that the predictions of the intertemporal approach to the currenct account are confirmed by the data.

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Year of publication:	1999
Authors:	Hoffman, M.
Institutions:	Department of Economics, European University Institute
Subject:	TIME SERIES \| INVESTMENTS \| INTERNATIONAL ECONOMY

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Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	43 pages
Classification:	C32 - Time-Series Models ; F41 - Open Economy Macroeconomics ; F47 - Forecasting and Simulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005816448