Deficits discussion of the 1980s. In contrast, during the 1990s productivity growth has been identified as the primary cause of … importance of budget deficits and productivity shocks for the determination of the current account. Using a sample of 21 OECD … current account, while country-specific productivity shocks appear to play a key role …

-specific productivity shocks generate business cycles that are highly correlated internationally. The model assumes recursive intertemporal … trade response to country-specific shocks. Hence, a productivity (and GDP) increase in a given country triggers a strong …

-specific productivity shocks generate business cycles that are highly correlated internationally. The model assumes recursive intertemporal … trade response to country-specific shocks. Hence, a productivity (and GDP) increase in a given country triggers a strong …