Accounting for US current account deficits: an empirical investigation
AbstractThe sources of US current account deficits are investigated using a number of macroeconomic variables and a vector error correction model. The variables are those typically emphasized by the traditional income - expenditure approach and the intertemporal (Ricardian) approach. The results indicate that macroeconomic variables explain the current account reasonably well, and the evidence seems to support the traditional approach where budget deficits and increases in real interest rates and terms of trade are associated with current account deficits.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 29 (1997)
Issue (Month): 6 ()
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Web page: http://www.tandfonline.com/RAEC20
Other versions of this item:
- Selahattin Dibooglu, 1995. "Accounting for U.S. Current Account Deficits: An Empirical Investigation," International Finance 9502003, EconWPA.
- F3 - International Economics - - International Finance
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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