EU_sustanability.pdf (145.14 kB)
On the sustainability of the EU's current account deficits
preprint
posted on 2007-03-30, 12:41 authored by Mark J. Holmes, Jesus Otero, Theodore PanagiotidisIn 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 members-states are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ a moving block bootstrap approach to the Hadri (2000) test. While there is evidence that current account sustainability applies to panels comprising EU members, this is not the case when non-EU economies are considered.
History
School
- Business and Economics
Department
- Economics
Pages
119715 bytesPublication date
2007Notes
This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_6.html.ISSN
1750-4171Language
- en