Theoretical and empirical studies of global current account imbalances
Funder: Fritz-Thyssen FoundationDuration: May 2008 - April 2011
This project explores the dynamics of current account imbalances and the corresponding saving-investment relationship. We introduce new bounded stationarity tests to assess the sustainability of these imbalances. Our results indicate that current account imbalances follow stochastic trends within their natural bounds. Additionally, we present a novel factor-based bootstrap inference for functional coefficient models. Using this approach, we find that the saving-investment relationship is influenced by key economic variables, including population growth, the age dependency ratio, and economic openness.
People
| Name | Telephone | Office | ||
|---|---|---|---|---|
|
Dr Fang Xu Senior Lecturer in Economics (Principal investigator)
T: +44 (0)1895 265257
E: fang.xu@brunel.ac.uk |
+44 (0)1895 265257 | fang.xu@brunel.ac.uk | Marie Jahoda 254 |
Outputs
Cavaliere, G. and Xu, F. (2014) 'Testing for unit roots in bounded time series'. Journal of Econometrics, 178 (2). pp. 259 - 272. ISSN: 0304-4076
Luetkepohl, H. and Xu, F. (2011) 'Forecasting Annual Inflation with Seasonal Monthly Data: Using Levels versus Logs of the Underlying Price Index'. Journal of Time Series Econometrics, 3 (1).
Herwartz, H. and Xu, F. (2010) 'A functional coefficient model view of the Feldstein-Horioka puzzle'. Journal of International Money and Finance, 29 (1). pp. 37 - 54. ISSN: 0261-5606