Publication
Decomposing and analysing the determinants of current accounts’ cyclicality : evidence from the Euro Area
| dc.contributor.author | Afonso, António | |
| dc.contributor.author | Jalles, João | |
| dc.date.accessioned | 2018-10-01T12:15:53Z | |
| dc.date.available | 2018-10-01T12:15:53Z | |
| dc.date.issued | 2018-06 | |
| dc.description.abstract | In this paper, we decompose the current account (CA) balance in 19 Euro area countries into cyclical and non-cyclical components. For the period 1999:Q1 to 2015:Q4, we compute income elasticities of imports and of exports via an alternative novel and improved approach by running time-varying coefficient models country-by-country. Then, in a panel set-up (and controlling for country-invariant characteristics), we uncover that terms of trade have a positive effect on both the cyclical and noncyclical components of the CA, while the Global Financial Crisis, compensation of employees and the employment level have a negative effect on the cyclical component. Moreover, the crisis had a greater impact on the cyclical component of the CA due to movements in the real effective exchange rate. In addition, we find a negative effect of the crisis on the cyclical component of the CA for countries that received financial assistance from the European Union, notably Ireland, Portugal, Spain and Latvia. | pt_PT |
| dc.description.version | info:eu-repo/semantics/publishedVersion | pt_PT |
| dc.identifier.citation | Afonso, António e João Jalles (2018). "Decomposing and analysing the determinants of current accounts’ cyclicality : evidence from the Euro Area". Instituto Superior de Economia e Gestão – REM Working paper nº 042 - 2018 | pt_PT |
| dc.identifier.issn | 2184-108X | |
| dc.identifier.uri | http://hdl.handle.net/10400.5/16023 | |
| dc.language.iso | eng | pt_PT |
| dc.peerreviewed | yes | pt_PT |
| dc.publisher | ISEG - REM - Research in Economics and Mathematics | pt_PT |
| dc.relation.ispartofseries | REM Working paper;nº 042 - 2018 | |
| dc.relation.publisherversion | https://rem.rc.iseg.ulisboa.pt/wps/pdf/REM_WP_042_2018.pdf | pt_PT |
| dc.subject | current account cyclicality | pt_PT |
| dc.subject | financial markets | pt_PT |
| dc.subject | time-varying coefficients | pt_PT |
| dc.title | Decomposing and analysing the determinants of current accounts’ cyclicality : evidence from the Euro Area | pt_PT |
| dc.type | working paper | |
| dspace.entity.type | Publication | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | workingPaper | pt_PT |