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Intertemporal Current Account and Productivity Shocks: Evidence for Some European Countries

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  • Fernando Pérez de Gracia
  • Juncal Cuñado

Abstract

In most intertemporal models of the current account, country specific productivity has ambiguous effects on the current account depending on whether consumption effect or investment effect dominates. The objective of this paper is to investigate the role of productivity shocks, in combination with investment behavior, as a source for current account dynamics for some European countries during the period 1960-2000. We decompose total productivity shocks between global and specific shocks and we examine the role of global and country specific productivity shocks for the current account and investment dynamics.
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  • Fernando Pérez de Gracia & Juncal Cuñado, "undated". "Intertemporal Current Account and Productivity Shocks: Evidence for Some European Countries," Working Papers on International Economics and Finance 01-05, FEDEA.
    • Handle: RePEc:fda:fdadef:01-05
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    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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