We find evidence of threshold behavior in current account adjustment for the G7 countries, such that the dynamics of … adjustment towards equilibrium depend upon whether the current-account/ net-output ratio breaches estimated, country specific … current account surplus or deficit thresholds. Both the speeds of adjustment and the size of the thresholds are found to …

, econometric partial adjustment models perform relatively well at the aggregate level. Analyzing the classic employment adjustment … problem, we show how discrete and occasional microeconomic adjustment is well described by a new form of partial adjustment … discrete and occasional adjustment at the micro level, where production units are essentially restricted to either operate with …

account adjustment) and intra-temporal trade (goods trade). An economy's response to a shock generally involves a combination … current account adjustment relative to the volume of goods trade, and the slower the speed of adjustment of the current …

Modern open economy macro models assume the continuous adjustment of international portfolio allocation. We introduce … gradual portfolio adjustment into a global equity market model. Our approach differs from related literature in two key …

two-way trade in differentiated products. The findings are consistent with the “smooth adjustment” hypothesis. Anti …

flexibility is desirable in the presence of real country-specific shocks that require adjustment in relative prices. However, in …