Article ID Journal Published Year Pages File Type
965103 Journal of the Japanese and International Economies 2012 24 Pages PDF
Abstract
► We analyze the current account as a portfolio problem with uncertainty. ► We develop a partial-equilibrium model with dynamic portfolio choices. ► In the model, portfolio rebalancing is driven by changes in expected asset returns. ► We empirically evaluate this model for the US-Japan bilateral current account. ► Changes in investment opportunities are important to the current account.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
The current account as a dynamic portfolio choice problem
Authors
, ,