HERWARTZ, HELMUT; XU, FANG - In: Manchester School 76 (2008) 3, pp. 267-278
We investigate for 26 OECD economies whether their current account imbalances to GDP are driven by stochastic trends. Regarding bounded stationarity as the more natural counterpart of sustainability, results from Phillips-Perron tests for unit root and bounded unit root processes are contrasted....