Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22012
Authors: 
Herwartz, Helmut
Xu, Fang
Year of Publication: 
2006
Series/Report no.: 
Economics working paper / Christian-Albrechts-Universität Kiel, Department of Economics 2006,07
Abstract: 
We investigate for 26 OECD economies if their current account imbalances are driven by stochastic trends. Standard ADF results are contrasted with tests accounting for the bounded support of the current account. Neglecting the latter feature might give misleading results in the sense that ADF based conclusions are biased towards the rejection of unit root features. The current account imbalances are found to be bounded nonstationary for most OECD economies. Panel based test statistics confirm the bounded nonstationarity for these series.
Subjects: 
Current account
bounded unit root tests
JEL: 
F32
E22
E21
C23
C22
C12
Document Type: 
Working Paper

Files in This Item:
File
Size
359.2 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.