Roots of the U.S. Current Account Deterioration: The Evolution of Current Account from 1981 to 1999
(2024) EKHS12 20241Department of Economic History
- Abstract
- Beginning in 1982, the United States has run persistent current account deficits. This study examines the evolution of the United States current account from 1981 to 1999 to answer the question of whether the current account deterioration from 1982 to 1987 is determined by the same or similar underlying factors as the current account deterioration that took place from 1992 to 1999. The study uses a current account decomposition and a basic vector autoregression (VAR) model to understand both the proximate elements and the underlying factors driving the deterioration of the United States current account. The results of the study suggest that the current account deterioration in the 1980s has significantly different dynamics to the... (More)
- Beginning in 1982, the United States has run persistent current account deficits. This study examines the evolution of the United States current account from 1981 to 1999 to answer the question of whether the current account deterioration from 1982 to 1987 is determined by the same or similar underlying factors as the current account deterioration that took place from 1992 to 1999. The study uses a current account decomposition and a basic vector autoregression (VAR) model to understand both the proximate elements and the underlying factors driving the deterioration of the United States current account. The results of the study suggest that the current account deterioration in the 1980s has significantly different dynamics to the deterioration of the current account in the 1990s. The 1980s current account deterioration and is associated with variation in exports and factors governing the price competitiveness of the United States goods exports. The current account deterioration of the 1990s, on the other hand, is more heavily associated with sustained growth rates in imports and with the increasing importance of financial factors governing trends in investment. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9167389
- author
- Siemann, Lorenzo LU
- supervisor
- organization
- course
- EKHS12 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 9167389
- date added to LUP
- 2024-07-29 10:50:03
- date last changed
- 2024-07-29 10:50:03
@misc{9167389,
abstract = {{Beginning in 1982, the United States has run persistent current account deficits. This study examines the evolution of the United States current account from 1981 to 1999 to answer the question of whether the current account deterioration from 1982 to 1987 is determined by the same or similar underlying factors as the current account deterioration that took place from 1992 to 1999. The study uses a current account decomposition and a basic vector autoregression (VAR) model to understand both the proximate elements and the underlying factors driving the deterioration of the United States current account. The results of the study suggest that the current account deterioration in the 1980s has significantly different dynamics to the deterioration of the current account in the 1990s. The 1980s current account deterioration and is associated with variation in exports and factors governing the price competitiveness of the United States goods exports. The current account deterioration of the 1990s, on the other hand, is more heavily associated with sustained growth rates in imports and with the increasing importance of financial factors governing trends in investment.}},
author = {{Siemann, Lorenzo}},
language = {{eng}},
note = {{Student Paper}},
title = {{Roots of the U.S. Current Account Deterioration: The Evolution of Current Account from 1981 to 1999}},
year = {{2024}},
}