Abstract
This article provides new evidence on the relationship between the United States budget and current account deficits. Using a testing procedure advocated by Bierens, both deficits are found to be stationary around a nonlinear deterministic trend and are co-trended insofar as they share a common nonlinear deterministic trend.
Type
Journal Article
Type of thesis
Series
Citation
Holmes, M.J. (2010). A reassessment of the twin deficits relationship. Applied Economics Letters, 17(12), 1209-1212.
Date
2010
Publisher
Routledge