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A General Equilibrium Perspective of Aggregate Import Demand

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  • Tuck Cheong Tang

Abstract

This study extends the analytical framework for the specification of import demand behaviour from the conventional partial equilibrium to a general equilibrium perspective. This perspective emphasises the macro dimension of import demand and the potential influence of financial factors. Two new structural import demand equations are developed: (1) one specification utilises the macroeconomic income-expenditure relationships in the goods market; and (2) the second specification utilises the portfolio balance approach to capture financial market developments.

Suggested Citation

  • Tuck Cheong Tang, 2013. "A General Equilibrium Perspective of Aggregate Import Demand," Monash Economics Working Papers 06-13, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2013-06
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2013/0613genralequilibriumtang.pdf
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    Cited by:

    1. Tuck Cheong Tang, 2018. "Financial Sector and Aggregate Import Demand: A General Equilibrium Perspective with Japan Data," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 14(2), pages 45-64.

    More about this item

    Keywords

    Aggregate import demand; General equilibrium perspective; Income-expenditure equilibrium; Portfolio balance;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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