An Investigation of Current Account Solvency in Latin America Using Non Linear Stationarity Tests

U of London Queen Mary Economics Working Paper No. 485

14 Pages Posted: 29 Mar 2003

See all articles by Georgios E. Chortareas

Georgios E. Chortareas

Univesrity of Athens; University of Athens - Faculty of Economics; University of Essex - Department of Accounting, Finance & Management; King’s College London

George Kapetanios

King's College, London

Merih Uctum

City University of New York (CUNY) - Brooklyn College & the Graduate Center - Department of Economics; City University of New York (CUNY) - Graduate Center

Date Written: January 2003

Abstract

Using a new methodology that allows for nonlinearities, we find frequent support for sustainability in the debt of a set of Latin American countries. Our findings overturn results obtained with traditional unit-root tests and provide a more realistic alternative to evaluate the external solvency of an economy.

JEL Classification: C22, F32, F34

Suggested Citation

Chortareas, Georgios and Chortareas, Georgios and Kapetanios, George and Uctum, Merih, An Investigation of Current Account Solvency in Latin America Using Non Linear Stationarity Tests (January 2003). U of London Queen Mary Economics Working Paper No. 485, Available at SSRN: https://ssrn.com/abstract=370083 or http://dx.doi.org/10.2139/ssrn.370083

Georgios Chortareas

Univesrity of Athens

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George Kapetanios (Contact Author)

King's College, London ( email )

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Merih Uctum

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