scholarly journals Testing a Present-value Model of the Current Account with Flexible Interest Rate: Evidence from Korea

2009 ◽  
Vol 15 (3) ◽  
pp. 133-166
Author(s):  
Heegab Choi
Keyword(s):  
Interest Rate ◽  
Current Account ◽  
Present Value ◽  
Present Value Model ◽  
Value Model ◽  
The Current Account

THE CURRENT ACCOUNT OF THE SPANISH ECONOMY, 1850-2016: WAS IT OPTIMAL?

2019 ◽  
pp. 1-26
Author(s):  
Oscar Bajo-Rubio ◽  
Vicente Esteve
Keyword(s):  
Current Account ◽  
Private Consumption ◽  
Present Value ◽  
Spanish Economy ◽  
Present Value Model ◽  
Vector Autoregression Model ◽  
Long Period ◽  
Autoregression Model ◽  
Value Model ◽  
The Current Account

ABSTRACT We analyse the possible optimality of the path followed by the current account of the Spanish economy over a very long period of almost 170 years (1850-2016), according to the intertemporal approach to the current account and using a present-value model. In particular, from the estimation of a bivariate vector autoregression model for the current account, we attempt to assess the extent to which the latter has been used to smooth private consumption over time in the presence of temporary shocks that the economy might suffer. In general, evidence does not seem to be particularly favourable to the validity of the model over the period of analysis.

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