-
作者：Ahearne, AG; Griever, WL; Warnock, FE
作者单位：Federal Reserve System - USA
摘要：We test extant hypotheses of the home bias in equity holdings using high quality cross-border holdings data and quantitative measures of barriers to international investment. The effects of direct barriers to international investment, when statistically significant, are not economically meaningful. More important are information asymmetries that owe to the poor quality and low credibility of financial information in many countries. While a direct measure of information costs is not available, ...
-
作者：Kohli, U
作者单位：Swiss National Bank (SNB)
摘要：Real GDP tends to underestimate the increase in real domestic income and welfare when the terms of trade improve. An improvement in the terms of trade is similar to a technological progress, but when computing real GDP, the national accounts treat the former as a price phenomenon and the latter as a real event. Calculations for 26 countries show that the divergence can add up to more than 10% of GDP in less than two decades. Our analysis has a solid theoretical foundation, being based on the G...
-
作者：Irwin, DA; Pavcnik, N
作者单位：Dartmouth College; National Bureau of Economic Research; Centre for Economic Policy Research - UK
摘要：This paper examines international competition in the commercial aircraft industry. We estimate a discrete choice, differentiated products demand system for wide-body aircraft and examine the Airbus-Boeing rivalry under various assumptions on firm conduct. We then use this structure to evaluate two trade disputes between the United States and European Union. Our results suggest that aircraft prices increased by about 3.7% after the 1992 US-EU agreement on trade in civil aircraft that limits sub...
-
作者：Devereux, MB; Engel, C; Storgaard, PE
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of British Columbia; Centre for Economic Policy Research - UK; National Bureau of Economic Research
摘要：This paper develops a model of endogenous exchange rate pass-through within an open economy macroeconomic framework, where both pass-through and the exchange rate are simultaneously determined, and interact with one another, Pass-through is endogenous because firms choose the currency in which they set their export prices. There is a unique equilibrium rate of pass-through under the condition that exchange rate volatility rises as the degree of pass-through falls. We show that the relationship...
-
作者：Burnside, C
作者单位：University of Virginia
摘要：A contingent liability is a future spending commitment that is realized with some probability. International organizations emphasize the dangers of contingent liabilities when providing advice. Why? One answer is obvious-if significant contingent liabilities are realized they commit governments to substantial fiscal costs. There is a further reason: by taking on a contingent liability the government can increase the probability of the underlying shock taking place. This paper describes how the...
-
作者：Fisher, EO; Kakkar, V
作者单位：City University of Hong Kong; University System of Ohio; Ohio State University; Johns Hopkins University; European University Institute
摘要：This paper examines whether comparative advantage is the long-run outcome of an evolutionary process in the open economy It formalizes the notion that natural selection eliminates inefficient firms and thus leads to stable and perhaps efficient patterns of world trade. Instead of assuming the existence of a Walrasian auctioneer, we study two simple matching processes that coordinate trade between firms. Our central result is that specialization according to comparative advantage, with the larg...
-
作者：Benigno, P
作者单位：New York University
摘要：This paper investigates how monetary policy should be conducted in a two-region general equilibrium model with monopolistic competition and price stickiness. This framework delivers a simple welfare criterion based on the utility of the consumers that can be used to evaluate monetary policy in a currency area. If the two regions share the same degree of nominal rigidity, the terms of trade are completely insulated from monetary policy and the optimal outcome is obtained by targeting a weighted...
-
作者：Bagwell, K; Staiger, RW
作者单位：University of Wisconsin System; University of Wisconsin Madison
摘要：Trade negotiations occur through time and between the governments of many countries. An important issue is thus whether the value of concessions that a government wins in a current negotiation may be eroded in a future bilateral negotiation to which it is not party. We identify rules of negotiation that serve to protect the welfare of governments that are not participating in the bilateral negotiation. Our main finding is that the two central principles of GATT/WTOnondiscrimination (MFN) and r...
-
作者：Morshed, AKMM; Turnovsky, SJ
作者单位：University of Washington; University of Washington Seattle; Washington State University
摘要：This paper develops a two-sector model in which intersectoral capital movements involve adjustment costs, expressed as capital lost in the transformation process. These costs have important consequences for the dynamics of capital accumulation and particularly for real exchange rate dynamics. Persistent deviations of the real exchange rate from its equilibrium are derived and for plausible values of the adjustment cost parameters are consistent with the observed degree of real exchange rate pe...
-
作者：Bown, CP
作者单位：Brandeis University; Brandeis University
摘要：This paper is a first attempt to empirically determine why countries choose to violate or adhere to GATT rules when making trade policy adjustments between negotiating rounds. We use a previously unexploited set of data in which countries implemented two 'types' of protection under the GATT system between 1973 and 1994: (i) 'legal' protection in which countries utilized the GATT's safeguards provisions; and (ii) 'illegal' protection in which the protection was provided outside of the safeguard...
