Decressin, Jörg; Disyatat, Piti - In: Journal of International Money and Finance 27 (2008) 6, pp. 897-914
This paper presents an analysis of capital market integration grounded in the intertemporal model of the current account. The model is extended to encompass liquidity constraints and fitted to data for euro-area countries and Italian and Canadian regions. With respect to capital mobility,...