search query: @indexterm adjustment costs / total: 31
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| Author: | Karayalcin, C. |
| Title: | Stock markets, adjustment costs and the international transmission of shocks |
| Journal: | Economica
1996 : NOV, VOL. 63:252, p. 599-610 |
| Index terms: | ECONOMICS STOCK MARKETS ADJUSTMENT COSTS |
| Language: | eng |
| Abstract: | This paper studies the role of stock markets and adjustment costs in the international transmission of supply shocks. It uses an analytically tractable two-country one-good model where intertemporal optimizing behaviour of infinitely lived agents endogenously determines the rate of capital accumulation and the current account. It is shown that the presence of adjustment costs and stock markets provide new insights concerning the channels through which supply shocks are internationally transmitted. |
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