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Harberger’s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects …
Persistent link: https://www.econbiz.de/10014395798
Theory predicts that a nation''s stochastic intertemporal budget constraint is satisfied if net exports (NX) and net …
Persistent link: https://www.econbiz.de/10014402804
Persistent link: https://www.econbiz.de/10009486191
Financial globalization was off to a rocky start in emerging economies hit by Sudden Stops in the 1990s. The surge in foreign reserves since then is viewed as a New Merchantilism in which reserves are a war-chest for defense against Sudden Stops. We conduct a quantitative assessment of this...
Persistent link: https://www.econbiz.de/10014400221
We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a...
Persistent link: https://www.econbiz.de/10014402360
A dynamic stochastic equilibrium model of a small open economy is used to quantify the macroeconomic effects of introducing capital controls to stabilize the balance of trade. This model focuses on the role of international trade and foreign debt as instruments that help smooth consumption in...
Persistent link: https://www.econbiz.de/10014395847
This paper examines trade reforms of uncertain duration undertaken in economies subject to real foreign and domestic shocks. These reforms induce consumption and import booms regardless of whether they succeed or fail and of the degree of intertemporal elasticity of substitution. If tariff...
Persistent link: https://www.econbiz.de/10014396072
We develop a two-country, balanced-growth intertemporal general equilibrium model to examine two predictions of the Balassa-Samuelson model, namely that (i) productivity differentials determine the domestic relative price of nontradables and (ii) deviations from purchasing power parity reflect...
Persistent link: https://www.econbiz.de/10014397957
The performance of macroeconomic indicators of capital mobility is examined in the context of an intertemporal equilibrium model of a small open economy. Recursive numerical solution methods are used to compute measures of consumption smoothing, savings-investment correlation, and the...
Persistent link: https://www.econbiz.de/10014397965
A three-good, stochastic intertemporal equilibrium model of a small open economy is used to examine the link between terms of trade and business cycles. Equilibrium co-movements of model economies representing industrial and developing countries are computed and compared with the stylized facts...
Persistent link: https://www.econbiz.de/10014397979