We study empirically how close consumption-smoothing models employing present-value relationships fit data for Latin-American countries, either in an open-economy or closed-economy environment. Bivariate VARS are estimated using either individual-system or a joint-system techniques (OLS or GLS - SURE). The latter are more efficient, as is widely known. Interestingly, Wald-Test results for OLS estimates are consistent with consumption smoothing, while GLS are not. However, this last result contradicts previous literature on this issue, which have found that Latin-American countries conform to consumption-smoothing models, with free-capital mobility and no liquidity constraints, which seems odd, given these countries' recent history
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.