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Sergio Da Silva, Guilherme Moura and Roberto Meurer
''Travel hysteresis in the US current account after the mid-1980s''
( 2005, Vol. 14 No.2 )
Following the real appreciation of the US dollar in the first half of the 1980s, travel expenditures in the current account soared. Employing standard regression techniques as well as Markov-switching regime analysis we show that such expenditures did not return to their pre-appreciation levels thereafter. The permanent increase suggests the presence of travel hysteresis in the US current account after the mid-1980s.
JEL: N1 - Economic History: Macroeconomics and Monetary Economics; Growth and Fluctuations: General, International, or Comparative
F3 - International Finance: General
Manuscript Received : Nov 18 2005 Manuscript Accepted : Dec 06 2005

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