Jinjarak, Yothin; Sheffrin, Steven M. - In: Journal of Macroeconomics 33 (2011) 2, pp. 233-246
This paper explores the causal relations between real estate prices and the current account using recently developed econometric methods for recursive systems. Using a variety of high-quality real estate indices, we find little evidence that current account deficits (capital account surpluses)...