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Public-Debt Sustainability, Real Exchange Rate, and Country-Specific Saving Rates

โœ Scribed by Karl Farmer

Publisher
Springer US
Year
2010
Tongue
English
Weight
338 KB
Volume
17
Category
Article
ISSN
1083-0898

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## Abstract As the real exchange rate of developing countries is especially vulnerable to stochastic events, standard unit root tests do not capture such events adequately. Using a Markov switching extension of the ADF test, which incorporates stochastic regime switching, we address the issue of re