| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP7076 |
| DP7076 A Faith-based Initiative: Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment? | |
| Shang-Jin Wei; Menzie David Chinn | |
| 发表日期 | 2008-12-08 |
| 出版年 | 2008 |
| 语种 | 英语 |
| 摘要 | We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price equalization set and the integrated intertemporal equilibrium. Under this approach, the aggregate production function depends on output prices and factor endowment stocks. It preserves all of the structure of a standard GDP function from the trade theory literature. In a two-country version of the model considered below, we examine the properties of the dynamic factor price equalization set. If the global economy is initially outside of this set, the equations of motion will pull the economy back into this set. Inside the dynamic FPE set, factor prices are equalized internationally, and with identical tastes and technology, the economy can be regarded as a fully integrated world equilibrium in a dynamic sense (the integrated intertemporal equilibrium). In this equilibrium, all of the standard properties of a closed economy one-sector neoclassical growth model hold, ruling out cycles and chaos, and allowing us to characterize the evolution of international inequality and the persistence of productivity and endowment shocks. Working from the integrated intertemporal equilibrium, we identify properties of persistence linked to inequality and real economic shocks. Cross-country differences in per capita incomes and wealth, and the factor content of trading patterns, may persist over time and even into the new steady state. This provides yet another reason why we might observe lack of income convergence internationally. In addition, real shocks in one country may be transmitted to the other country through factor markets and product prices, and may have persistent effects into the steady-state as well. Outside the steady-state, the relative price of labor intensive goods/services also trends with the evolution of the capital stock. |
| 主题 | International Trade and Regional Economics |
| 关键词 | Cross country income convergence Neoclassical models of trade Open economy growth |
| URL | https://cepr.org/publications/dp7076 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/535913 |
| 推荐引用方式 GB/T 7714 | Shang-Jin Wei,Menzie David Chinn. DP7076 A Faith-based Initiative: Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment?. 2008. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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