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We find evidence of threshold behavior in current account adjustment for the G7 countries, such that the dynamics of … adjustment towards equilibrium depend upon whether the current-account/ net-output ratio breaches estimated, country specific … current account surplus or deficit thresholds. Both the speeds of adjustment and the size of the thresholds are found to …
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We find evidence of threshold behavior in current account adjustment for the G7 countries, such that the dynamics of … adjustment towards equilibrium depend upon whether the current-account/ net-output ratio breaches estimated, country specific … current account surplus or deficit thresholds. Both the speeds of adjustment and the size of the thresholds are found to …
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