GDP-spillovers in multi-country models
AbstractSpillovers resulting from fiscal and monetary policy are compared and analysed in small static, small dynamic and large dynamic multi-country models. To compare the size of the spillovers, we consider simulations in which GDP for a certain number of years is held one percent above base in the country where the shock originates. The results indicate that spillovers are large in size. An important transmission mechanism in the contribution to foreign GDP is found to be the foreign real interest rate, contributions to foreign GDP generated through trade are found to be small. In empirical models with endogenous exchange and interest rates, it was found that under floating exchange rate regimes spillovers are much smaller than under pegged exchange rate regimes. Furthermore, we note that under floating exchange rate regimes, spillovers seem to be larger in small dynamic models than in large empirical models.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 15 (1998)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Other versions of this item:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helliwell, John F. & Padmore, Tim, 1985.
"Empirical studies of macroeconomic interdependence,"
Handbook of International Economics,
in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 21, pages 1107-1151
- John F. Helliwell & Tim Padmore, 1982. "Empirical Studies of Macroeconomic Interdependence," NBER Working Papers 1021, National Bureau of Economic Research, Inc.
- Mitchell, Peter R. & Sault, Joanne E. & Smith, Peter N. & Wallis, Kenneth F., 1998. "Comparing global economic models," Economic Modelling, Elsevier, vol. 15(1), pages 1-48, January.
- Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-11, July.
- Douven, R. C. & Plasmans, J. E. J., 1996. "SLIM, a small linear interdependent model of eight EU-member states, the USA and Japan," Economic Modelling, Elsevier, vol. 13(2), pages 185-233, April.
- Papell, D.H., 1988.
"Monetary Policy In The Unites States Under Flexible Exchange Rates,"
8, Houston - Department of Economics.
- Papell, David H, 1989. "Monetary Policy in the United States under Flexible Exchange Rates," American Economic Review, American Economic Association, vol. 79(5), pages 1106-16, December.
- repec:sae:niesru:v:112:y::i:1:p:41-52 is not listed on IDEAS
- Roubini, Nouriel, 1991.
"Leadership and cooperation in the Europian Monetary System: A simulation approach,"
Journal of Policy Modeling,
Elsevier, vol. 13(1), pages 1-39.
- Nouriel Roubini, 1989. "Leadership and Cooperation in the European Monetary System: A Simulation Approach," NBER Working Papers 3044, National Bureau of Economic Research, Inc.
- Ghosh, Atish R & Masson, Paul R, 1991. "Model Uncertainty, Learning, and the Gains from Coordination," American Economic Review, American Economic Association, vol. 81(3), pages 465-79, June.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Savonarola vs Paperoga: decrescita e endogenità delle aree valutarie ottimali
by Alberto Bagnai in Goofynomics on 2011-12-31 17:42:00
- Bagnai, Alberto, 2009. "The role of China in global external imbalances: Some further evidence," China Economic Review, Elsevier, vol. 20(3), pages 508-526, September.
- Wang, Zheng & Li, Hua-Qun & Wu, Jing & Gong, Yi & Zhang, Huan-Bo & Zhao, Chen, 2010. "Policy modeling on the GDP spillovers of carbon abatement policies between China and the United States," Economic Modelling, Elsevier, vol. 27(1), pages 40-45, January.
- Fagan, Gabriel & Henry, Jérôme & Mestre, Ricardo, 2001. "An area-wide model (AWM) for the euro area," Working Paper Series 0042, European Central Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.