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An Investigation of Current Account Solvency in Latin America Using Non Linear Nonstationarity Tests Author info | Abstract | Publisher info | Download info | Related research | Statistics Georgios Chortareas (Bank of England)
George Kapetanios (Queen Mary University of London)
Merih Uctum (City University of New York)
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Using a new methodology that allows nonlinearities, we find frequent support for external debt sustainability in a number of Latin American countries. Our findings reverse the results for several countries, obtained with traditional unit-root tests and present a richer framework for evaluating the external solvency of an economy. Our results also provide some justification for the assumption the international current accounts are based on.
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Article provided by Berkeley Electronic Press in its journal Studies in Nonlinear Dynamics & Econometrics .
Volume (Year): 8 (2004)
Issue (Month): 1 ()
Pages: 1200-1200
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Keywords: Current Account Nonlinearity SETAR Models Unit Roots References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Maurice Obstfeld & Kenneth Rogoff, 2001.
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International Trade
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[Downloadable!] Maurice Obstfeld and Kenneth Rogoff., 2000.
"The Six Major Puzzles in International Macroeconomics: Is There a Common Cause? ,"
Center for International and Development Economics Research (CIDER) Working Papers
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Center for International and Development Economics Research, Working Paper Series
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[Downloadable!] Alan M. Taylor, 2002.
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NBER Working Papers
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Econometrica ,
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Other versions: Hansen, Bruce E, 1996.
"Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis ,"
Econometrica ,
Econometric Society, vol. 64(2), pages 413-30, March.
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Other versions: Jerry Coakley & Ana-Maria Fuertes & Fabio Spagnolo, 2004.
"The Feldstein-Horioka puzzle is not as bad as you think ,"
Money Macro and Finance (MMF) Research Group Conference 2003
17, Money Macro and Finance Research Group.
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Kapetanios, George & Shin, Yongcheol & Snell, Andy, 2003.
"Testing for a unit root in the nonlinear STAR framework ,"
Journal of Econometrics ,
Elsevier, vol. 112(2), pages 359-379, February.
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Wickens, M. R. & Uctum, Merih, 1993.
"The sustainability of current account deficits : A test of the US intertemporal budget constraint ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 17(3), pages 423-441, May.
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Maurice Obstfeld & Kenneth Rogoff, 2000.
"Perspectives on OECD economic integration : implications for U.S. current account adjustment ,"
Proceedings ,
Federal Reserve Bank of Kansas City, pages 169-208.
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Other versions:
Maurice Obstfeld and Kenneth Rogoff., 2000.
"Perspectives on OECD Economic Integration: Implications for US Current Account Adjustment ,"
Center for International and Development Economics Research (CIDER) Working Papers
C00-116, University of California at Berkeley.
[Downloadable!] Maurice Obstfeld & Kenneth Rogoff, 2001.
"Perspectives on OECD Economic Integration: Implications for US Current Account Adjustment ,"
International Trade
0012004, EconWPA.
[Downloadable!] Maurice Obstfeld & Kenneth Rogoff, 2006.
"Perspectives on OECD Economic Integration: Implications for US Current Account Adjustment ,"
Center for International and Development Economics Research, Working Paper Series
1006, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
[Downloadable!] George Kapetanios & Yongcheol Shin, 2002.
"Unit Root Tests in Three-Regime SETAR Models ,"
Working Papers
465, Queen Mary, University of London, Department of Economics.
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Jansen, W. Jos, 1997.
"Can the intertemporal budget constraint explain the Feldstein-Horioka puzzle? ,"
Economics Letters ,
Elsevier, vol. 56(1), pages 77-83, September.
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Stilianos Fountas & Jyh-Lin Wu, 1999.
"Are The U.S. Current Account Deficits Really Sustainable? ,"
International Economic Journal ,
Korean International Economic Association, vol. 13(3), pages 51-58, October.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Yunus Aksoy & Miguel Leon-Ledesma, 2008.
"Non-Linearities and Unit Roots in G7 Macroeconomic Variables ,"
Topics in Macroeconomics ,
Berkeley Electronic Press, vol. 8(1), pages 1508-1508.
[Downloadable!] (restricted)
Other versions: Ibrahim Chowdhury & Gregory Gadzinski & Mathias Hoffmann, 2004.
"Asymmetric Dynamics in the Current Account: Evidence from Long-Horizon Data ,"
Working Paper Series in Economics
13, University of Cologne, Department of Economics.
[Downloadable!]
Theo Panagiotidis & Mark J Holmes, 2005.
"Sustainability and Asymmetric Adjustment: Some New Evidence Concerning Behaviour of the US Current Account ,"
Money Macro and Finance (MMF) Research Group Conference 2005
29, Money Macro and Finance Research Group.
[Downloadable!]
Vahagn Galstyan, 2007.
"How Persistent are International Capital Flows? ,"
The Institute for International Integration Studies Discussion Paper Series
iiisdp232, IIIS.
[Downloadable!]
Dimitris K. Christopoulos & Miguel León-Ledesma, 2004.
"Current Account Sustainability in the US: What Do We Really Know About It? ,"
Studies in Economics
0412, Department of Economics, University of Kent.
[Downloadable!]
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