On the stationarity of current account deficits in the European union
In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit-root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross-sectional dependence. For this...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2010
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- eng
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/22950
- Acceso en línea:
- https://doi.org/10.1111/j.1467-9396.2010.00896.x
https://repository.urosario.edu.co/handle/10336/22950
- Palabra clave:
- Bootstrapping
Budget deficit
European union
Panel data
Testing method
- Rights
- License
- Abierto (Texto Completo)
| Summary: | In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit-root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ an AR-based bootstrap approach to the Hadri (2000) test. While there is only mixed evidence that current account stationarity applies when examining individual countries, this does not appear to be the case when considering panels comprising both EU and non-EU members. © 2010 Blackwell Publishing Ltd. |
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