The evidence presented in the paper rejects the twin deficit hypothesis for the Austrian current account balance during the last two decades. The results are based on an estimate of a vector error correction model including quarterly data for the current account balance and potentially relevant...

The paper explores the empirical properties of a non-linear stochastic trend model which can be viewed as an intermediate case between a linear and a log-linear trend model. I assess the small sample distribution of the ML estimator by Monte Carlo simulations and use it to model some typical...