Testing for the Sustainability of the Current Account Deficit in Two Industrial Countries
TThe objective of this paper is to test for the sustainability of the current account deficits in the U.S. and Canada over the 1973--1994 period. Using various unit root and cointegration tests some of which allow for structural changes, we conclude that the real current account deficits-to-GDP ratios are not sustainable.
|Date of creation:||1996|
|Date of revision:||1996|
|Publication status:||Published in Economics Letters Vol.52 No. 2, 1996|
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