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Author: Ross Milbourne
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 40
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Book Description
Author: Ross Milbourne
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 40
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Book Description
Author: Christopher John Kent
Publisher:
ISBN:
Category :
Languages : en
Pages : 254
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Book Description
Author: Mr.Paul Cashin
Publisher: International Monetary Fund
ISBN: 1451940238
Category : Business & Economics
Languages : en
Pages : 18
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Book Description
This paper estimates a simple consumption-smoothing model of the French current account, and examines its capacity to predict recent developments in France’s external performance. The model views the current account as a buffer through which private agents can smooth consumption over time in response to temporary disturbances to output, investment, and government expenditure. The empirical results indicate that the model performs well overall, and predicts correctly the sharp turnaround in France’s external accounts observed in the past three years—a feature of the data that conventional models of trade flows, based on income and relative price variables, appear unable to explain.
Author:
Publisher:
ISBN: 9780732513887
Category : Balance of payments
Languages : en
Pages : 17
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Book Description
Author: S. McGill
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 25
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Book Description
Author: Pierre-Richard Agenor
Publisher:
ISBN:
Category :
Languages : en
Pages : 18
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Book Description
This paper estimates a simple consumption-smoothing model of the French current account, and examines its capacity to predict recent developments in France`s external performance. The model views the current account as a buffer through which private agents can smooth consumption over time in response to temporary disturbances to output, investment, and government expenditure. The empirical results indicate that the model performs well overall, and predicts correctly the sharp turnaround in France`s external accounts observed in the past three years--a feature of the data that conventional models of trade flows, based on income and relative price variables, appear unable to explain.
Author: Khawlah A. Abdalla
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 278
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Book Description
Author: Stelios Makrydakis
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper investigates whether the sequence of current account deficits experienced in Greece over the 1950-1995 period have been excessive. The degree of excessiveness is gauged by comparing the actual current account series to an optimal current account measure derived from an intertemporal model of current account determination. The findings indicate that optimal consumption smoothing did not take place over the sample period suggesting that the existing restrictions to the free flow of capital were binding. More importantly the stock of net foreign liabilities was found to have been set on an unsustainable path following the 1989/90 balance of payments crisis, yet there is clear evidence that this tendency has been gradually reversed during the last couple of years.
Author: Nouriel Roubini
Publisher:
ISBN:
Category : Balance of payments
Languages : en
Pages : 68
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Book Description
This paper presents an infinite horizon model of consumption and taxation " smoothing" that implies a simple relation between current accounts, budget deficits, investment rates and transitory output shocks. It is argued that such a model could explain the "Feldstein-Horioka puzzle" of the apparent lack of international capital mobility. Traditional regressions of the savings rate on the investment rate, as performed in the literature, are shown to be incorrect tests of the hypothesis of capital mobility because they do not control for the independent role of budget deficits and temporary output shocks in the current account and savings equations. Empirical tests of the model for a sample of 18 OECD countries present good evidence that international capital markets are widely integrated and that the "Feldstein-Horioka puzzle" might be explained by the important role of fiscal deficits in the determination of the current account and the saving behavior.
Author: Christopher J. Kent
Publisher: International Monetary Fund
ISBN: 1451856369
Category : Business & Economics
Languages : en
Pages : 50
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Book Description
Is the relationship between the current account balance and the terms of trade affected by the persistence of terms of trade shocks? In intertemporal models of the current account that incorporate a consumption-smoothing and an investment response to shocks, the effect of the terms of trade on external balances is predicted to be dependent on the duration of terms of trade shocks. Using a median-unbiased estimator, an unbiased model-selection rule, and terms of trade data for 128 countries over the period 1960-99 we identify two groups of countries-those that typically experience temporary terms of trade shocks and those that typically experience permanent terms of trade shocks. The results from panel-data regressions of the two groups of countries support the theoretical predictions of the intertemporal approach to the current account. We find that the greater (lesser) the persistence of the terms of trade shock, the more (less) the investment effect dominates the consumption-smoothing effect on saving, so that the current account balance moves in the opposite (same) direction as that of the shock.
