Credit Constraints and the Current Account: A Test for the Japanese Economy
AbstractThis paper constructs a small open economy version of the Kiyotaki and Moore (1997) model along the line developed by Kasa (1998) and derives a closed-form solution of the current account dynamics. Using the solution, a null hypothesis of no credit constraints is tested for the Japanese economy. The empirical results show that the null hypothesis is strongly rejected and that the estimated signs of the parameters are consistent with the model. The Kiyotaki and Moore model gives an adequate description of the Japanese economy.
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Bibliographic InfoPaper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 573.
Length: 28 pages
Date of creation: Jul 2003
Date of revision:
Contact details of provider:
Postal: Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501
Web page: http://www.kier.kyoto-u.ac.jp/eng/index.html
More information through EDIRC
Credit constraints; Current account; Japanese economy;
Other versions of this item:
- Kunieda, Takuma & Shibata, Akihisa, 2005. "Credit constraints and the current account: A test for the Japanese economy," Journal of International Money and Finance, Elsevier, vol. 24(8), pages 1261-1277, December.
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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