Optimality of the current account of the Spanish economy, 1850-2015

  1. Oscar Bajo-Rubio 1
  2. Vicente Esteve 2
  1. 1 Universidad Castilla La Mancha
  2. 2 Universidad de Alcalá
    info

    Universidad de Alcalá

    Alcalá de Henares, España

    ROR https://ror.org/04pmn0e78

Journal:
Documentos de Trabajo (IAES, Instituto Universitario de Análisis Económico y Social)

ISSN: 1139-6148

Year of publication: 2020

Issue: 4

Pages: 1-26

Type: Working paper

DIALNET GOOGLE SCHOLAR lock_opene_Buah editor

More publications in: Documentos de Trabajo (IAES, Instituto Universitario de Análisis Económico y Social)

Abstract

We analyse the possible optimality of the path followed by the current account of the Spanish economy over a very long period of more than 160 years (i.e., 1850- 2015), according to the intertemporal approach to the current account and using a present-value model. In particular, from the estimation of a bivariate VAR model for the current account, we try to assess to which extent the latter has been used to smooth private consumption along time in the presence of temporary shocks that the economy might suffer. In general, the evidence does not seem to be particularly favourable to the validity of the model over the period of analysis.

Data source: Dialnet