Burda, Michael C; Gerlach, Stefan - In: American Economic Review 82 (1992) 5, pp. 1234-53
The deterioration of the U.S. merchandise trade deficit in the 1980s fell mostly on durable goods. Using a representative-agent model, the authors show that the key distinction between the trade balance in nondurables and durables is the role of intertemporal prices in the latter. A decrease in...