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Alzua, Maria Laura - Econometric Society - 2004

This paper studies the different economic configurations that may give rise to incomplete fiscal decentralization, with …? Does incomplete fiscal decentralization arises in equilibrium? We obtain two different sets of equilibria as result of a … decentralization. The model may apply to economies like Argentina, Ecuador, the CFA in Africa and Eastern European countries willing to …

Persistent link: https://www.econbiz.de/10005328854

Banks and Capital Inflows

Fontenla, Matias - Econometric Society - 2004

This paper examines the effects that capital inflows have on the financial system in a Diamond-Dybvig environment. Here, an adverse-selection problem arises where short-term capital has the incentive to enter the domestic banking system while long-term capital chooses to stay out. Then,...

Persistent link: https://www.econbiz.de/10005328911

Why are poor countries poor?

Cohen, Daniel; Soto, Marcelo - Econometric Society - 2004

We attempt to explain why standard explanations of the poverty of nations are unsatisfactory. We first argue that human capital is low in poor countries because its production has increasing returns with respect to life expectancy. We then show that the reason why capital does not flow to poor...

Persistent link: https://www.econbiz.de/10005328912

Exchange rates, equity returns and capital flows

Rey, Helene; Hau, Harald - Econometric Society - 2004

We develop an equilibrium model in which exchange rates, stock prices and capital flows are jointly determined under incomplete forex risk trading. Incomplete hedging of forex risk, documented for U.S. global mutual funds, has three important implications: 1) exchange rates are almost as...

Persistent link: https://www.econbiz.de/10005329018

Why does not capital frlow from rich to poor countries? An Empirical investigation

Alfaro, Laura; Kalemli-Ozcan, Sebnem - Econometric Society - 2004

We examine the role of different explanations for the lack of flows of capital from rich to poor countries---the Lucas paradox---in an empirical framework. Broadly speaking, the theoretical explanations for this paradox include differences in fundamentals affecting the production structure...

Persistent link: https://www.econbiz.de/10005342232

Exchange Rate Based Stabilization with Sudden Restrictions on Capital Flows

Subramanian, Chetan; Park, Jungsoo - Econometric Society - 2004

This study examines the dynamics associated with an economy implementing an Exchange Rate Based Stabilization (ERBS) programs when they are subject to sudden restrictions in international capital flows. In the context of a simple theoretical model, we describe the pressures on a country's...

Persistent link: https://www.econbiz.de/10005342385

The Chilean-Style of Capital Controls: an Empirical Assessment

Tapia, Heriberto; Ffrench-Davis, Ricardo - Econometric Society - 2004

In this paper we review the main features of the Chilean-Style of capital controls during the nineties. In particular, we analyze empirically the effectiveness of the unremunerated reserve requirement (URR) in three key areas: its capacity to open space for monetary policy, its influence on the...

Persistent link: https://www.econbiz.de/10005063567

New evidence of the impact of capital account liberalization on economic growth

Santana, José Ricardo; Garcia, Fernando - Econometric Society - 2004

This article analyzes the effects of financial liberalization on economic growth, focusing mainly the empirical aspects of this line of research. The text aims to answer fundamental questions put forward by recent literature: What effects has capital account liberalization had on economic...

Persistent link: https://www.econbiz.de/10005170254

Technology Differences and Capital Flows

Claro, Sebastian - Econometric Society - 2004

The one-to-one mapping between cross-country differences in capital returns and the direction of international capital flows is broken in a multisector world where international factor price differences are driven by technology differences. A technology-backward or low-return-to-capital country...

Persistent link: https://www.econbiz.de/10005699622

World financial liberalization and its effects on capital flows

Santana, José Ricardo; Garcia, Fernando - Econometric Society - 2004

This paper investigates the determining factors in private capital flow, differentiating foreign direct investment (FDI) from other flows and emphasizing the role of financial liberalization and. Two reasons brought about this examination. The first is the substantial increase in private capital...

Persistent link: https://www.econbiz.de/10005699642