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The Dynamic Welfare Costs of the 1997 Asian Crisis

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Author Info
Tatsuyoshi Miyakoshi () (Osaka School of International Public Policy (OSIPP), Osaka University)
Masakatsu Okubo (Graduate School of Systems and Information Engineering,University of Tsukuba)
Junji Shimada (School of Management, Aoyama Gakuin University)
Abstract

This paper has measured the welfare cost, investigated the effects of and the recovery process of the 1997 Asian crisis, and evaluated the IMF-supported programs. The paper finds: (i) the ratios of ewhole costf to the consumption level of the hypothetical economy are large: 30% for Thailand, 50% for Indonesia, 36% for Korea, 18% for Malaysia and 39% for Hong Kong; (ii) the dynamic process of ecost at period tf quickly converges to 40% right after the crisis, but the costs for Indonesia and Hong Kong gradually increase towards 100%; (iii) the IMF-supported programs for Thailand, Indonesia and Korea have been implemented right after the cost hits peaks; (iv) the cost of the IMF-supported program was not expensive compared with the corresponding welfare cost of crisis.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0725.pdf
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Publisher Info
Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-25.

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Length: 33 pages
Date of creation: Jun 2007
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Handle: RePEc:osk:wpaper:0725

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Web page: http://www.econ.osaka-u.ac.jp/
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Related research
Keywords: dynamic welfare cost time-varying model 1997 Asian crisis

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models
C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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This page was last updated on 2008-11-12.


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