TY  - JOUR
AU  - Glick,Reuven
AU  - Rogoff,Kenneth
TI  - Global Versus Country-Specific Productivity Shocks and the Current      Account
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4140
PY  - 1992
Y2  - August 1992
UR  - http://www.nber.org/papers/w4140
L1  - http://www.nber.org/papers/w4140.pdf
N1  - Author contact info:
Reuven Glick
Economic Research Department
Federal Reserve Bank of San Francisco
101 Market Street
San Francisco, CA  94105
Tel: 415/974-3184
Fax: 415/974-2168
E-Mail: reuven.Glick@sf.frb.org

Kenneth S. Rogoff
Thomas D Cabot Professor of Public Policy
Economics Department
Harvard University
Littauer Center 216
Cambridge, MA 02138-3001
Tel: 617-495-4022
Fax: 617/495-7730
E-Mail: krogoff@harvard.edu
AB  - The intertemporal approach to the current account is often regarded as theoretically elegant but of limited empirical significance. This paper derives highly tractable current account and investment specifications that we estimate without resorting to calibration or simulation methods. In time-series data for eight industrialized countries, we find that country-specific productivity shocks tend to worsen the current account, whereas global shocks have little effect. Both types of shock raise investment. It is a puzzle, however, for the intertemporal model that long-lasting local productivity shocks have a larger impact effect on investment than on current account.
ER  -