search query: @author Durlauf, S. N. / total: 5
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| Author: | Durlauf, S. N. Staiger, R. W. |
| Title: | Compositional effects of government spending in a two-country, two-sector production model |
| Journal: | Journal of International Economics
1990 : MAY, VOL. 28:3-4, p. 333-347 |
| Index terms: | GOVERNMENT SPENDING PATTERNS PRODUCTION MODELS WORLD ECONOMY CAPITAL INTERNATIONAL ECONOMICS |
| Language: | eng |
| Abstract: | A two-country, two-sector, two-period, Heckscher-Ohlin model is employed to analyze the production-side channels through which a change in the composition of government spending in one country affects real exchange rates, rental rates, and current account balances throughout the world. With one traded and one non-traded consumption good, the model highlights the way in which the world capital stock reshuffles internationally in response to changes in the composition of government spending. These international capital flows correspond to temporary current account imbalances, and serve as the transmission mechanism linking the real exchange rate changes at home and abroad. |
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