@techreport{NBERw8361,
 title = "Current Accounts and Exchange Rates: A New Look at the Evidence",
 author = "Greg Leonard and Alan C. Stockman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8361",
 year = "2001",
 month = "July",
 URL = "http://www.nber.org/papers/w8361",
 abstract = {This paper 'goes back to basics' in empirical analysis of the J-Curve.  First, we document strong violations in the distributional assumptions that underlie nearly all previous work on this issue.  Second, we employ distribution-free, non-parametric statistical tests to characterize the data and summarize the key relationships between real exchange rates, the current account, and real GDP.  We find some (weak) evidence of a J-Curve in the data.  Interestingly, however, we document that this evidence is not consistent with the standard theoretical explanation of the J-Curve.  Consequently, our empirical results pose a strong challenge for international economic theory.},
}