Consumption Smoothing and the Current Account : Evidence for France, 1970-1994 /

This paper estimates a simple consumption-smoothing model of the French current account, and examines its capacity to predict recent developments in France's external performance. The model views the current account as a buffer through which private agents can smooth consumption over time in re...

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Dettagli Bibliografici
Autore principale: Bismut, Claude
Altri autori: Agenor, Pierre-Richard, Cashin, Paul, McDermott, C.
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 1995.
Serie:IMF Working Papers; Working Paper ; No. 1995/119
Accesso online:Full text available on IMF
Descrizione
Riassunto:This paper estimates a simple consumption-smoothing model of the French current account, and examines its capacity to predict recent developments in France's external performance. The model views the current account as a buffer through which private agents can smooth consumption over time in response to temporary disturbances to output, investment, and government expenditure. The empirical results indicate that the model performs well overall, and predicts correctly the sharp turnaround in France's external accounts observed in the past three years-a feature of the data that conventional models of trade flows, based on income and relative price variables, appear unable to explain.
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Descrizione fisica:1 online resource (18 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students