Dai, Meixing (1992): Technological dependence and budgetary policy in an uncertain horizon model of small open economy.
Download (314kB) | Preview
It is set up in this paper a formulation which endogeneizes the choice of investment inputs in open economy context where a small country may depend on foreign technology. Then it is integrated into a macroeconomic model of small specialized country with Blanchard-Yaari type uncertain horizon consumers. Contrary to some models with ad hoc formulation, it is found in this model that generally the budgetary policy has eects on the short- and long-run capital stock. The corresponding intertemporal spill-over effects of the budgetary policy, through the supply side of economy on external position, aggregate consumption, real exchange rate and capital evaluation ratio, are also examined.
|Item Type:||MPRA Paper|
|Original Title:||Technological dependence and budgetary policy in an uncertain horizon model of small open economy|
|Keywords:||Technological dependence, choice of investment inputs, capital stock, capital evaluation ratio, real exchange rate and external position|
|Subjects:||F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
|Date Deposited:||11. Mar 2009 16:36|
|Last Modified:||21. Feb 2013 16:50|
BLANCHARD Olivier J., (1984), Current and Anticipated Defcits, Interest Rates and Economic Activity, European Economic Review 25, 7-27.
BLANCHARD Olivier J., (1985), Debt, Deficits, and Finite Horizons, Journal of Political Economy, vol. 93, No. 2, 223-247.
BUITER Willem H., (1984), Saddlepoint Problems in Continuous Time Rational Expectations Models: a General Method and Some Macroeconomic Examples, Econometrica 52, No. 3, May, 665-680.
BUITER Willem H., (1989), Budgetary Policy, International and Intertemporal Trade in the Global Economy, North-Holland.
DAI, Meixing, (1992), La politique budgétaire en économie ouverte: Approches intertemporelles, Thesis, Université Louis Pasteur, Strasbourg, France.
FRENKEL Jacob A. and RAZIN Assaf, (1987), Fiscal Policies and the World Economy, The MIT Press, Massachusetts.
GIAVAZZI Francesco and WYPLOSZ Charles, (1984), The Real Exchange Rate, the Current Account, and the Speed of Adjustment, in J. BILSON and R. MARSTON, eds., Exchange Rate Theory and Practice, University of Chicago Press.
GIOVANNINI Alberto, (1988), The real exchange rate, the capital stock, and scal policy, European Economic Review 32, 1747-1767, North-Holland.
HAYASHI Fumio, (1982), Tobin's Marginal q and Average q: a Neoclassical Interpretation, Econometrica, vol. 50, No. 1, 213-224.
MATSUYAMA Kiminori, (1987), Current account dynamics in a nite horizon model, Journal of International Economics 23, 299-313.
MATSUYAMA Kiminori, (1990), Residential Investment and the Current Account, Journal of International Economics 28, 137-153.
OBSTFELD Maurice, (1990), Intertemporal dependence, impatience, and dynamics, Journal of Monetary Economics 26, 45-75.
PITCHFORD J. D., (1989), Optimum borrowing and the current account when there are fluctuations in income, Journal of International Economics 26, 345-358.
PLOEG Frederick van der, (1991), Money and Capital in Interdependent Economies with Overlapping Generations, Economica 58, 233-256.
RAMSEY Frank P., (1928), A mathematical theory of saving, Economic Journal 38, 543-559.
TURNOVSKY Stephen J. and Partha SEN, (1991), Fiscal Policy, Capital Accumulation, and Debt in an Open Economy, Oxford Economic Papers 43,1-24.
UZAWA, Hirofumi, (1969), Time preference and the Penrose eect in a twoclass model of economic growth, Journal of Political Economy 77, 628-652; also in "Selected Papers of UZAWA Hirofumi", Cambridge Press, Mass., 1988.
VAROUDAKIS Aristomène A., (1991), Endogenous Growth with Overlapping Generations in the Open Economy, Paper presented at the "Open Economy Macroeconomics" session of the 10th Congress of International Economic Association, 24-28 August 1992, Moscow.
WEIL Phillipe, (1989a), Overlapping families of infinitely-lived agents, Journal of Public Economics 38, 183-198.
WYPLOSZ Charles, (1991), On Exchange Rate Effect of German Unification, Weltwirtschaftliches Archiv, Heft 1, 1-17.
YAARI Menahem E., (1965), Uncertain Lifetime, Life Insurance, and the Theory of the Consumer, Review of Economic Studies, 137-150.
Available Versions of this Item
- Technological dependence and budgetary policy in an uncertain horizon model of small open economy. (deposited 11. Mar 2009 16:36) [Currently Displayed]