Income effects on the trade balance
Article Abstract:
A study on the income effects on trade balance focuses on differences between permanent and transitory disturbances for the US, Germany, the UK and Japan. Trade balance movements in the four countries have mostly been associated with transitory changes in wages. In addition, such transitory changes are negatively associated with the balance of trade. Permanent changes in income have minimal impact on trade balance. Intertemporal models and real business cycle models provided basis for the results.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
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Towards a reconciliation of the empirical evidence on the monetary approach to exchange rate determination
Article Abstract:
An analysis describing the monetary approach to exchange rate (MAER) determination is presented. Empirical tests show contrasting basis for MAER validity. Structural form models yield negative results while cross-equation restrictions tests which use nonstructural representations exhibit positive analysis. It is shown that cross-equation tests fail to detect variations from the model. Thus, the MAER is fundamentally invalid.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1993
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The emerging U.S. current account deficit in the 1980s: a cointegration analysis
Article Abstract:
The history of the US balance of payments is studied by evaluating cointegrating regressions between imports and exports. Results show that until 1983, balance of payments approached zero. Since then, there has been an annual deficit trend exceeding $100 billion.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1992
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