Table VII: Test for equality of the optimal and actual current account
|
Restrictions |
Coefficient |
Standard error |
T-statistic |
|
c 1 - a 1 = 0 |
0.3922 |
0.209949 |
1.868074 |
|
c 2 - a 2 = 0 |
0.0789 |
0.228639 |
0.345085 |
|
c 3 - a 3 = 0 |
0.2241 |
0.22555 |
0.99357 |
|
c 4 - a 4 = 0 |
-0.4352 |
0.229637 |
-1.89516 |
|
c 5 - a 5 = 0 |
-0.0303 |
0.158773 |
-0.19084 |
|
d 1 - b1 = 1.0512 10 |
0.8214 |
0.184162 |
-1.24781 |
|
d 2 - b 2 = 0 |
0.1298 |
0.228679 |
0.567608 |
|
d 3 - b 3 = 0 |
-0.3639 |
0.244109 |
-1.49073 |
|
d 4 - b 4 = 0 |
0.7648 |
0.256563 |
2.980939* |
|
d 5 - b 5 = 0 |
-0.5837 |
0.208832 |
-2.79507* |
Reject the null, which implies that the restrictions do not hold.
10 The restriction is d1 - b1 = 1 + r where r is the world rate of interest. We use the average rate in our
sample for this test.
25
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