search query: @author Bergstrand, J. H. / total: 5
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| Author: | Balvers, R. J. Bergstrand, J. H. |
| Title: | Government expenditure and equilibrium real exchange rates |
| Journal: | Journal of International Money and Finance
2002 : OCT, VOL. 21:5, p. 667-692 |
| Index terms: | EXCHANGE RATES GOVERNMENT PUBLIC EXPENDITURE EQUILIBRIUM ANALYSIS |
| Language: | eng |
| Abstract: | Government expenditures (financed by lump-sum taxes) influence real exchange rates potentially via a resource- withdrawal channel and a consumption-tilting channel. Recent theoretical and empirical studies have considered only the effects of government spending through the resource-withdrawal channel. The papers solves for the theoretical relationships among the real exchange rate, relative private consumption, relative government consumption, and tradables and nontradables production in a two-country general equilibrium model and then estimate the model's structural equations. The results suggest that government expenditures influence real exchange rates approximately equally via the resource- withdrawal and consumption-tilting channels. |
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