The intertemporal approach to the current account: evidence from Argentina

In this paper, an intertemporal model is used to analyze the current account and test whether it accounts for the evolution of the Argentinean current account over the period extending from 1855 to 2002. The intertemporal model presented here takes into account several sources of external shocks for...

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Autor principal: Moccero, Diego Nicolás
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2006
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3558
http://www.depeco.econo.unlp.edu.ar/doctrab/doc66.pdf
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id I19-R120-10915-3558
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
economía
equilibrio económico
Argentina
macroeconomía
spellingShingle Ciencias Económicas
economía
equilibrio económico
Argentina
macroeconomía
Moccero, Diego Nicolás
The intertemporal approach to the current account: evidence from Argentina
topic_facet Ciencias Económicas
economía
equilibrio económico
Argentina
macroeconomía
description In this paper, an intertemporal model is used to analyze the current account and test whether it accounts for the evolution of the Argentinean current account over the period extending from 1855 to 2002. The intertemporal model presented here takes into account several sources of external shocks for small economies such as a change of the real interest rate and the real exchange rate. Evidence shows that the intertemporal model does not pass the statistical tests and does not explain the Argentinean experience. More specifically, if the Argentinean current account was to behave as the model predicts, one would observe the opposite movement to that observed for the actual current account. Our main conjecture about the weak performance of the model is related to i) the fact that one of its most important assumption is violated for some part of the period under consideration (1931-1989); and ii) that the balance of payments crises and stop and go cycles may have altered the relation between the variables suggested by the model. To cope with this problem, we have estimated a model for the period 1885-1930 (a period with relatively high capital mobility and with neither currency crises nor stop and go cycles) and found some evidence in favour of this result. A general conclusion to be drawn is that, in contrast to other Latin American countries, an intertemporal current account model can not appropriately account for the dynamics of the current account of Argentina, even thought there is some evidence in favour of the model for the period 1885-1930.
format Articulo
Documento de trabajo
author Moccero, Diego Nicolás
author_facet Moccero, Diego Nicolás
author_sort Moccero, Diego Nicolás
title The intertemporal approach to the current account: evidence from Argentina
title_short The intertemporal approach to the current account: evidence from Argentina
title_full The intertemporal approach to the current account: evidence from Argentina
title_fullStr The intertemporal approach to the current account: evidence from Argentina
title_full_unstemmed The intertemporal approach to the current account: evidence from Argentina
title_sort intertemporal approach to the current account: evidence from argentina
publishDate 2006
url http://sedici.unlp.edu.ar/handle/10915/3558
http://www.depeco.econo.unlp.edu.ar/doctrab/doc66.pdf
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