search query: @author Hoffmann, M. / total: 6
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| Author: | Hoffmann, M. |
| Title: | The Relative Dynamics of Investment and the Current Account in the G7 Economies |
| Journal: | Economic Journal
2001 : MAY, VOL. 111:47, p. c148-c163 |
| Index terms: | ECONOMICS DYNAMIC MODELS INVESTMENT CURRENT ACCOUNT |
| Language: | eng |
| Abstract: | This paper contributes to the empirics of the intertemporal approach to the current account. The authors use a cointegrated VAR framework to identify permanent and transitory components of country-specific and global shocks. The authors' approach allows us to investigate empirically the sensitivity to persistence implied by many forward-looking models and the authors' results shed new light on the excess volatility of investment encountered by Glick and Rogoff (1995). In G7 data, the authors find the relative current-account and investment response to be in line with the intertemporal approach. |
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