haku: @journal_id 67 / yhteensä: 829
viite: 30 / 829
Tekijä: | Schmitt-Grohe, S. Uribe, M. |
Otsikko: | Closing small open economy models |
Lehti: | Journal of International Economics
2003 : OCT, VOL. 61:1, p. 163-185 |
Asiasana: | Open economy Business cycles |
Kieli: | eng |
Tiivistelmä: | The small open economy model with incomplete asset markets features a steady-state that depends on initial conditions and equilibrium dynamics that possess a random walk component. A number of modifications to the standard model have been proposed to induce stationarity. This paper presents a quantitative comparison of these alternative approaches. Five different specifications are considered. The main finding of the paper is that all models deliver virtually identical dynamics at business-cycle frequencies, as measured by unconditional second moments and impulse response functions. The only noticeable difference among the alternative specifications is that the complete-asset-market model induces smoother consumption dynamics. |
SCIMA