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Productivity Spillovers, Terms of Trade and the "Home Market Effect"

Corsetti, Giancarlo - 2005

This paper analyzes the welfare implications of international spillovers related to productivity gains, changes in market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general-equilibrium model with monopolistic competition, drawing a...

Persistent link: https://www.econbiz.de/10012467520

On the Desirability of Capital Controls

Heathcote, Jonathan - 2016

In a standard two country international macro model we ask whether imposing restrictions on international non-contingent borrowing and lending is ever desirable. The answer is yes. If one country imposes capital controls unilaterally, it can generate favorable changes in the dynamics of...

Persistent link: https://www.econbiz.de/10012456774

The International Transmission of Credit Bubbles : Theory and Policy

Ventura, Jaume - 2015

propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins …

Persistent link: https://www.econbiz.de/10012457733

A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation

Costinot, Arnaud - 2011

This paper develops a simple theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite … relative strength of this desire between two consecutive periods. Specifically, it is optimal for the strategic country to tax … capital inflows (or subsidize capital outflows) if it grows faster than the rest of the world and to tax capital outflows (or …

Persistent link: https://www.econbiz.de/10012460977

Valuation Effects and the Dynamics of Net External Assets

Devereux, Michael B. - 2009

The traditional current account can be an inaccurate measure of the change in the net foreign asset (NFA) position. Using gross asset and liability positions at the country level, a number of 'valuation effects' have been identified which contribute to changes in NFA but do not enter the...

Persistent link: https://www.econbiz.de/10012463853

Offshoring in a Ricardian World

Rodríguez-Clare, Andrés - 2007

Falling costs of coordination and communication have allowed firms in rich countries to fragment their production process and offshore an increasing share of the value chain to low-wage countries. Popular discussions about the aggregate impact of this phenomenon on rich countries have stressed...

Persistent link: https://www.econbiz.de/10012465450

Fixed vs. Floating Exchange Rates : How Price Setting Affects the Optimal Choice of Exchange-Rate Regime

Devereux, Michael B. - 1998

We investigate the welfare properties of fixed and floating exchange rate regimes in a two-country, dynamic, infinite-horizon model with agents optimizing in an environment of uncertainty created by monetary shocks. The optimal exchange rate regime may depend on whether prices are set in the...

Persistent link: https://www.econbiz.de/10012471945

Identification of Counterfactuals in Dynamic Discrete Choice Models

Kalouptsidi, Myrto - 2015

Dynamic discrete choice models (DDC) are not identified nonparametrically. However, the non-identification of DDC models does not necessarily imply non-identification of counterfactuals of interest. Using a novel approach that can accommodate both nonparametric and restricted payoff functions,...

Persistent link: https://www.econbiz.de/10012457142

A Dynamic Theory of Public Spending, Taxation and Debt

Battaglini, Marco - 2006

This paper presents a dynamic political economy theory of public spending, taxation and debt. Policy choices are made … revenues via a distortionary income tax and by borrowing. These revenues can be used to finance a national public good and …, equilibrium tax rates are too high and too volatile, public good provision is too low and debt levels are too high. In some …

Persistent link: https://www.econbiz.de/10012466568

The Terms of Trade and Economic Growth in the Periphery 1870-1938

Blattman, Christopher - 2003

The contending fundamental determinants of growth -- institutions, geography and culture --exhibit far more persistence than do the growth rates they are supposed to explain. So, what exogenous shocks might account for the variance around those persistent fundamentals? The terms of trade seems...

Persistent link: https://www.econbiz.de/10012468757