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This paper examines a model of optimal growth where the aggregation of two separate well behaved and concave production technologies exhibits a basic non-convexity. First, we consider the case of strictly concave utility function: when the discount rate is either low enough or high enough, there...
Persistent link: https://www.econbiz.de/10010750452
This paper examines a model of optimal growth where the agregation of two separate well behaved and concave production technologies exhibits a basic non-convexity. Multiple equilibria prevail in an intermediate range of interest rate. However, we show that the optimal paths monotonically...
Persistent link: https://www.econbiz.de/10010750896
% of the overall adjustment and the depreciation of the national currency is lower with respect to models where this margin … depreciation of the exchange rate. …
Persistent link: https://www.econbiz.de/10010738485
Trade deficits and surpluses are sometimes attributed to intentionally low or high exchange rate levels. The impact of exchange rate levels on trade has been much debated but the large body of existing empirical literature does not suggest an unequivocally clear picture of the trade impacts of...
Persistent link: https://www.econbiz.de/10010899210
drop in investment and in the current account, in line with empirical evidence, only if the traded sector is more capital … markup to depend on the number of competitors, the two-sector model can produce the real exchange rate depreciation found in …
Persistent link: https://www.econbiz.de/10008855579
contractual relationships that link exports from Sub-Saharan Africa to China and investment by Chinese firms in Sub-Saharan Africa … combine trade, aid and investment, which may create 'lock-in' effects. China's trade and investment focus on the commodities …, especially in oil-exporting countries. Chinese investment, however, increasingly involves other sectors, such as the …
Persistent link: https://www.econbiz.de/10009353553
run contemporaneous elasticities of investment with respect to interest rate through the user cost and through debt …
Persistent link: https://www.econbiz.de/10010738572
adjustment costs on investment. …
Persistent link: https://www.econbiz.de/10010750394
Complicated neoclassical models predict that if investment is sensitive to current financial performance, this is a …, refers to the principle of "growth of the fitter" to explain investment-cash flow sensitivities as the workings of a healthy …
Persistent link: https://www.econbiz.de/10010750396
This paper presents a comparable set of results on the monetary transmission channels on firm investment (the interest … those countries,investment relationships are estimated explaining investment by its user cost, sales and cash flow.A first … result is that investment is sensitive to user cost changes in all those four countries. Thisimplies an operative interest …
Persistent link: https://www.econbiz.de/10010750630