On the Sustainability of the EU’s Current Account Deficits

Serie

• Discussion Paper Series

Resumen

• In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (i) the identification of which members-states are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ a moving block bootstrap approach to the Hadri (2000) test. While there is evidence that current account sustainability applies to panels comprising EU members, this is not the case when non-EU economies are considered.

autores

• Holmes, Mark
• Otero, Jesús
• Panagiotidis, Theodore

fecha de publicación

• 2007-02

Área temática

• C33 - Modelos de ecuaciones múltiples/simultáneas; Variables múltiples: Modelos con datos de panel; Modelos espacio-temporales
• F32 - Ajustes de la balanza por cuenta corriente; Movimientos de capital a corto plazo
• F41 - Macroeconomía de la economía abierta

Enfoque geográfico

• North America  Continent
• United States of America  Country

Líneas de investigación

• Current Account Sustainability
• Heterogeneous Dynamic Panels
• Mean Reversion
• Panel Stationarity

Issue

• 2007_6