| Tekijä: | Pierdzioch, C. |
| Otsikko: | Home-product bias, capital mobility, and macroeconomic volatility |
| Lehti: | Oxford Economic Papers
2005 : JAN, VOL. 57:1, p. 142-156 |
| Asiasana: | Macroeconomics Volatility Capital Mobility Models |
| Kieli: | eng |
| Tiivistelmä: | In the paper, a dynamic general equilibrium 2-country optimizing model is used to analyze the consequences of international (here as: int-al.) capital mobility (here as: cap-mob.) for macroeconomic (henceforth as: m-econ.) volatility. To this end, the dynamic m-econ. effects of a monetary policy, a fiscal policy, and a labour supply shock are analyzed. Simulations are used to analyse the implications of changes in the degree of cap-mob. for the propagation of shocks. The simulation results obtained for a bond economy are compared with the ones obtained for a complete-market economy. It is shown that allowing for a home-product bias in preferences has a number of interesting implications for the way changes in int-al. cap-mob. and in the structure of int-al. financial markets affect how shocks propagate through an open economy. |
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