An econometric test of the modern approach to the current account in Mexico
DOI:
https://doi.org/10.24201/ee.v9i2.278Keywords:
balance of payments, econometrics, MexicoAbstract
This paper derives and evaluates the observable implications of the new view of the current account of the balance of payments in Mexico, during the period 1950-1991. According to this view, the current account is a result of the optimal decisions towards saving and investing from economic agents. The results arising from econometric tests applied to Mexico are consistent with the observable implications of this new view.