Consumption-Based Interest Rate and the Present-Value Model of the Current Account—Evidence from Nigeria

Author/Editor:

Olumuyiwa S Adedeji

Publication Date:

August 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper presents a model of current account determination, based upon the permanent-income hypothesis. A present-value relationship among the current account, changes in net output, the exchange rate and the terms of trade is derived and the implications of such a relationship are tested using data for Nigeria during 1960-97. This paper presents a model of current account determination, based upon the permanent-income hypothesis. A present-value relationship among the current account, changes in net output, the exchange rate and the terms of trade is derived and the implications of such a relationship are tested using data for Nigeria during 1960-97.

Series:

Working Paper No. 01/93

Subject:

Frequency:

Annually

English

Publication Date:

August 1, 2001

ISBN/ISSN:

9781451851656/1018-5941

Stock No:

WPIEA0932001

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

29

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