Productivity and Preferences in a Small Open Economy
Chadha, Jagjit S.
Cambridge Working Papers in Economics
Faculty of Economics
MetadataShow full item record
Chadha, J. S., Janssen, N., & Nolan, C. (2004). Productivity and Preferences in a Small Open Economy. https://doi.org/10.17863/CAM.5021
Following Hall (1997) it is increasingly common to incorporate preference, as well as productivity, perturbations in calibrated general equilibrium models. We assess the performance of a small open economy stochastic growth model (based on the Blanchard-Yaari framework) under alternate driving processes. Whist both models provide familiar descriptions of the aggregate economy, we find that the model driven by productivity disturbances has clear advantages in explaining the behaviour towards foreign asset accumulation.
Classification-JEL: E20, E32, F32, F41, intertemporal macro, open economy, current account dynamics
This record's DOI: https://doi.org/10.17863/CAM.5021
All Rights Reserved
Licence URL: https://www.rioxx.net/licenses/all-rights-reserved/
Recommended or similar items
The current recommendation prototype on the Apollo Repository will be turned off on 03 February 2023. Although the pilot has been fruitful for both parties, the service provider IKVA is focusing on horizon scanning products and so the recommender service can no longer be supported. We recognise the importance of recommender services in supporting research discovery and are evaluating offerings from other service providers. If you would like to offer feedback on this decision please contact us on: firstname.lastname@example.org