Showing 1 - 10 of 41
The central variable of theories of financial frictions--the external finance premium--is unobservable. This paper distils the external finance premium from a DSGE model estimated on U.S. macroeconomic data. Within the DSGE framework, movements in the premium can be given an interpretation in...
Persistent link: https://www.econbiz.de/10005490270
Persistent link: https://www.econbiz.de/10005387419
Persistent link: https://www.econbiz.de/10005512251
Almost 80 percent of capital goods production in the world is concentrated in 10 countries. Poor countries import most … of their capital goods. We argue that international trade in capital goods has quantitatively important effects on … economic development through two channels: (i) capital formation and (ii) aggregate TFP. We embed a multi country, multi sector …
Persistent link: https://www.econbiz.de/10010779610
resulting excessive “capital shallowing” could be identified as a weakness of the rapid economic growth of the 1990s that may …
Persistent link: https://www.econbiz.de/10008615662
Persistent link: https://www.econbiz.de/10005514283
Persistent link: https://www.econbiz.de/10005514295
This paper incorporates preferences that display first-order risk aversion (FORA) into a standard real business cycle model. Although FORA preferences represent a sharp departure from the expected utility/constant relative risk aversion (EU/CRRA) preferences common in the business cycle...
Persistent link: https://www.econbiz.de/10005490277
Production sharing and vertical specialization account for a significant share of trade between developed and developing countries. The Mexican maquiladora industry provides an ideal example of production sharing in a small open economy. The typical "maquila" imports most of its inputs from and...
Persistent link: https://www.econbiz.de/10005498675
Persistent link: https://www.econbiz.de/10005394381