Logo
Munich Personal RePEc Archive

THE PRINCIPAL COMPONENTS APPROACH TO QUOTA FORMULATION AT THE IMF

Nguéma-Affane, Thierry (2008): THE PRINCIPAL COMPONENTS APPROACH TO QUOTA FORMULATION AT THE IMF.

[thumbnail of MPRA_paper_7618.pdf]
Preview
PDF
MPRA_paper_7618.pdf

Download (519kB) | Preview

Abstract

This paper explores and supports the use of the principal components analysis to objectively establish countries’ relative economic size and determine variables’ weights in a new IMF quota formula. This approach shows a rebalancing of quotas shares in favor of developing countries over time but suggests that PCA-generated quota formulas can only guide and not determine IMF quota structure. The simulation of ad hoc quota increases using PCA-generated quota formulas indicates that a rebalancing of actual quota shares and voting power in favor of developing countries, while preserving low-income countries voting share, is achievable if advanced economies forego increases in their quotas and total basic votes are at least tripled.

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.