Christopoulos, Dimitris; León-Ledesma, Miguel A. - In: Journal of International Money and Finance 29 (2010) 3, pp. 442-459
We analyze the sustainability of the US current account (CA) deficit by means of unit-root tests. First, we argue that there are several reasons to believe that the CA may follow a non-linear mean-reversion behavior under the null of stationarity. Using a non-linear ESTAR model we can reject the...
