Sustainability of external imbalances in the OECD countries

  1. Bajo Rubio, Oscar
  2. Díaz Roldán, María del Carmen
  3. Esteve, Vicente
Book:
XIX Encuentro de Economía Pública: Políticas Públicas para la salida de la crisis

Publisher: Universidade de Santiago de Compostela

ISBN: 978-84-695-1574-7

Year of publication: 2012

Pages: 67

Congress: Encuentro de Economía Pública (19. 2012. Santiago de Compostela)

Type: Conference paper

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Abstract

In this paper, we provide a test of the sustainability of external imbalances in the OECD countries, over the years 1970-2007. Specifically, we deal with the case of those countries that have experienced current account deficits in more than half of the years throughout the period of analysis, and address the recent critique of Bohn (2007) on unit root and cointegration tests of the intertemporal budget constraint.

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