Autore
Hoffmann, Mathias

Titolo
National stochastic trend and international macroeconomic fluctuations: the role of the current account
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1999 - Fascicolo: 26 - Pagina iniziale: 1 - Pagina finale: 31

We propose a simple intertemporal model of output and current account dynamics that we estimate using a cointegrated VAR approach. We sug-gest a method for identifying global and country-specific shocks froni thè VAR and test it. using cross-country evidence. Our results show that thè identification scheme works well in practice. corroborating an important prediction of thè intertemporal approach to thè current account. We associate global shocks with movements in thè US output growth rate. In accordance with thè theory, we also observe a link between thè global shock and a measure of thè world real interest rate. This link is more pronounced in thè long-run than in thè short-run.



Testo completo: http://www.iue.it/ECO/WP-Texts/ECO99-26.pdf

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