A Model of Endogenous Nontradability and its Implications for the Current Account

作者: Paul Bergin , Reuven Glick

DOI: 10.1111/J.1467-9396.2007.00662.X

关键词:

摘要: This paper analyzes how a model where goods are endogenously nontraded can help explain the relationship between current account and real exchange rate fluctuations. We formulate small open economy two-period in which switch being traded or nontraded. The demonstrates movements interest impose significant costs on intertemporal trade. also shows that variety of nonlinear relationships is possible rate, depending relative transport substitutability preferences goods. In contrast to recent work, our analysis implies such trade may be concern for many countries, not just those with large imbalances.

参考文章(14)
Maurice Obstfeld, Kenneth Rogoff, The Six Major Puzzles in International Macroeconomics: Is There a Common Cause? Nber Macroeconomics Annual. ,vol. 15, pp. 339- 412 ,(2000) , 10.3386/W7777
Andrew B. Bernard, J. Bradford Bradford Jensen, Why Some Firms Export SSRN Electronic Journal. ,(2001) , 10.2139/SSRN.140074
PIET SERCU, RAMAN UPPAL, CYNTHIA VAN HULLE, The Exchange Rate in the Presence of Transaction Costs: Implications for Tests of Purchasing Power Parity Journal of Finance. ,vol. 50, pp. 1309- 1319 ,(1995) , 10.1111/J.1540-6261.1995.TB04060.X
Rudiger Dornbusch, Real Interest Rates, Home Goods, and Optimal External Borrowing Journal of Political Economy. ,vol. 91, pp. 141- 153 ,(1983) , 10.3386/W0779
Martin Feldstein, Charles Horioka, None, Domestic Saving and International Capital Flows The Economic Journal. ,vol. 90, pp. 314- 329 ,(1980) , 10.2307/2231790
Jeffrey D. Sachs, Richard N. Cooper, Stanley Fischer, The Current Account and Macroeconomic Adjustment in the 1970s Brookings Papers on Economic Activity. ,vol. 1981, pp. 201- 282 ,(1981) , 10.2307/2534399
Bernard Dumas, Dynamic Equilibrium and the Real Exchange Rate in a Spatially Separated World Review of Financial Studies. ,vol. 5, pp. 153- 180 ,(1992) , 10.1093/RFS/5.2.153
David Hummels, Toward a Geography of Trade Costs Social Science Research Network. ,(1999) , 10.22004/AG.ECON.283448
Timothy J. Kehoe, Caroline M. Betts, Tradability of Goods and Real Exchange Rate Fluctuations ,(2001)
David K. Backus, Patrick J. Kehoe, Finn E. Kydland, International Real Business Cycles Journal of Political Economy. ,vol. 100, pp. 745- 775 ,(1992) , 10.1086/261838