Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211549 
Authors: 
Year of Publication: 
1989
Series/Report no.: 
Bank of Finland Discussion Papers No. 14/1989
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper investigates the determination of the current account. In particular, the role of aggregate saving shocks is analyzed using the saving-investment approach as a general frame of reference. Emphasis is paid to testing the Ricardian equivalence proposition. Testing is carried out using cross-section data from 52 countries. Empirical results are clearly at variance with the Ricardian approach. By contrast, the results demonstrate the importance of persistence effects as well as traditional life-cycle model effects.
Persistent Identifier of the first edition: 
ISBN: 
951-686-198-9
Document Type: 
Working Paper

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