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Investment and the Current Account Model of the G-7

Author

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  • Iscan, T.B.
  • Rao, U.L.G.

Abstract

The joint behavior of investment and the current account is derived as a triangular simultaneous equations model. To estimate this model for the G7 countries, we propose a full-information GLS estimator for panel data that extends Zellner-Theil three-stage least squares estimator and allows for parameter heterogeneity across individual countries.

Suggested Citation

  • Iscan, T.B. & Rao, U.L.G., 2000. "Investment and the Current Account Model of the G-7," Department of Economics at Dalhousie University working papers archive 2000-3, Dalhousie, Department of Economics.
  • Handle: RePEc:dal:wparch:2000-3
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    INVESTMENTS ; INTERNATIONAL ECONOMY ; ECONOMIC MODELS ; REGRESSION ANALYSIS;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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