-
作者：Friberg, R
作者单位：Stockholm School of Economics
摘要：This paper studies the choice of price setting currency for an exporter faced with the choice of setting price in his own, in the importers' or a third currency under exchange rate uncertainty. We establish that sufficient conditions on demand and cost functions for exchange rate pass-through to be less than unity under certainty are also sufficient conditions for price setting in the importer's currency to yield the highest expected profit under exchange rate uncertainty. Under the same condi...
-
作者：Osler, CL
作者单位：Federal Reserve System - USA; Federal Reserve Bank - New York
摘要：This paper shows that rational short-term speculative activity transforms exchange rates' response to shocks. Transitory shocks will have a permanent impact on exchange rates when such speculators are active, and the impact of shocks will be smoothed. The model may help explain the observed extended response of exchange rates to sterilized intervention. Further, the model suggests that exchange rate fundamentals may be properly identified even when those variables fail to forecast better than ...
-
作者：Mansoorian, A
作者单位：York University - Canada
摘要：A model in which consumption exhibits durability, and habits develop over the flow of services provided by them is used to study current account dynamics. Durability leads to adjacent substitutability in consumption, while habits are assumed to lead to adjacent complementarity. The adjustment of the current account may be non-monotonic. If habit effects are dominant in the short run, and durability effects in the long run, then after a terms of trade deterioration we will have a current accoun...
-
作者：Tornell, A; Lane, PR
作者单位：Columbia University; Harvard University
摘要：A puzzling feature of temporary terms of trade booms is that some countries have responded to such windfalls by running current account deficits. Furthermore, those countries that ran current account deficits failed to attain greater post-boom growth rates, indicating the deficits were consumed or invested in low quality projects. The point we make is that the structure of the fiscal process is critical in determining outcomes. If fiscal control is unitary, then the consumption-smoothing effec...
-
作者：Cadot, O; Desruelle, D
作者单位：INSEAD Business School; International Monetary Fund
摘要：This paper examines the determinants of the allocation of national R&D resources between research and development activities. We derive conditions under which a firm being outdistanced by a foreign rival in a two-stage international patent race would drop out, and relate those conditions to home-market size and to the race's cost and risk characteristics. Because of this discouragement effect, firms located in smaller markets appear as if they were, on average, less successful in transforming ...
-
作者：Lee, J
作者单位：University of California System; University of California Irvine
摘要：This paper analyzes the hitherto unexplored relation between expected exchange rates and import prices of durable goods. The distinguishing feature of durable goods is their asset-like quality, implying that their current and future sales are substitutable: durability induces intertemporal substitution. Hence, expected exchange rates affect the current price of imported durables. Although the sign of the effect cannot be determined by theory only, the evidence shows that an expected appreciati...
-
作者：Michaely, M
作者单位：Hebrew University of Jerusalem
摘要：Most often, the theory of preferential trade agreements assumes a small home country, and a large partner. In this paper, the welfare implications of a small trading partner are examined. A distinction is found between two ranges of size: a country may be just small, or be ultra-small. Conventional propositions about the likelihood of a gain or a loss from entering into a preferential agreement would still hold when the partner is small; whereas some of them would have to be reversed when the ...
-
作者：Canova, F; Marrinan, J
作者单位：Pompeu Fabra University
摘要：This paper studies the generation and transmission of international cycles in a multicountry model with production and consumption interdependencies. Two sources of disturbance are considered and three channels of propagation are compared. Technology disturbances, which are mildly correlated across countries, are more successful than government expenditure disturbances in reproducing actual data. The presence of a common component to the shocks and of production interdependencies appear to be ...
-
作者：Mountford, A
作者单位：University of Southampton
摘要：This paper shows the importance of a model's dynamic structure for international trade theory. It shows how, by adding a simple dynamic structure to the standard convex 2 X 2 X 2 Heckscher-Ohlin model, the long run implications of international trade can be the reverse of the static ones. It also shows how trade can cause the steady state per capita income in the world economy to rise or fall, how trade can allow one country to catch up and overtake the steady state income of another country a...
-
作者：Senhadji, AS
作者单位：International Monetary Fund
摘要：In their analysis of the dynamic behavior of terms of trade and the trade balance, Backus, Kehoe, and Kydland found that the lead and lag correlation between these two variables is S-shaped for a set of OECD countries. Furthermore, they show that this S-curve can be replicated by a two-country dynamic general equilibrium model. Surprisingly, the S-curve also describes the dynamic relationship between terms of trade and the trade balance for a large set of LDCs. This S-curve can also be reprodu...
