Resumen de Sustainability of external imbalances in the OECD countries

Oscar Bajo Rubio, María del Carmen Díaz Roldán, Vicente Esteve

• In this paper, we provide a test of the sustainability of external imbalances in the OECD countries, over the years 1970-2007. Specifically, we deal with the case of those countries that have experienced current account deficits in more than half of the years throughout the period of analysis, and address the recent critique of Bohn (2007) on unit root and cointegration tests of the intertemporal budget constraint.