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Present value tests of the current account with durables consumption

Listed author(s):
  • Iscan, Talan B.

The present value tests of intertemporal model of the current account usually assume that all goods are traded and that aggregate consumption decisions can be closely approximated by a random walk process. This paper extends these models by explicitly introducing durables and nontraded goods into an intertemporal model of the current account, and tests the model using Canadian data.

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Article provided by Elsevier in its journal Journal of International Money and Finance.

Volume (Year): 21 (2002)
Issue (Month): 3 (June)
Pages: 385-412

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Handle: RePEc:eee:jimfin:v:21:y:2002:i:3:p:385-412
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30443

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  23. Campbell, John Y, 1987. "Does Saving Anticipate Declining Labor Income? An Alternative Test of the Permanent Income Hypothesis," Econometrica, Econometric Society, vol. 55(6), pages 1249-1273, November.
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