Munich Personal RePEc Archive

A model of adjustment and growth: An empirical analysis

Reinhart, Carmen (1991): A model of adjustment and growth: An empirical analysis. Published in: Macroeconomic Models for Adjustment in Developing Countries : pp. 10-37.

[thumbnail of MPRA_paper_13233.pdf]

Download (173kB) | Preview


the simplicity that makes a model more tractable from an operational standpoint may have several drawbacks as a result of the necessarily restrictive assumptions it employs. This paper assesses the empirically the trade-off between its simplifying assumptions and its ability to fit reality. This trade-off can be assessed by applying the model to a variety of countries. For each country, the following questions are asked: (1) Are the key parameters of the model stable? (2) How sensitive are the policy multipliers to these parameter estimates-that is, how robust are the policy implications? and (3) Are some target variables more vulnerable to forecast errors than others? This paper examines these three questions for a diverse sample of seven capital importing developing countries and attempts to reach some conclusions about the usefulness of the model to help in designing policy.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.