Long-run relationship with shifts between Mexican current account revenues and expenditures
We study whether there is a long-run relationship between Mexican current account (CA) revenues and expenditures. Our results show that evidence in favor of this claim is drawn only when (at least) three structural break levels are allowed. The CA therefore behaves as a broken-mean stationary process. The shifts in the CA seem to be caused by large and sudden changes in the real exchange rate.
Volume (Year): 33 (2013)
Issue (Month): 2 ()
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