ADJUSTMENT COSTS IN INVESTMENT, TIME-PREFERENCES, AND THE CURRENT ACCOUNT

• 成果类型: Article
• 署名作者: KARAYALCIN, C
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)90026-4
• 发表日期: 1994
• 页码: 81-95
• 关键词: current account; INTERNATIONAL LENDING

摘要

This paper studies the effects of supply and demand shocks on the optimal investment and savings decisions of economic agents in a small open economy. The two building blocks of the setup are adjustment costs in investment and a recursive time preference structure. It is shown that the model can mimic certain stylized facts.