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The Cost of Volatile Investment in an Emerging Economy

Author

Listed:
  • Reinout De Bock

    (International Monetary Fund)

Abstract

I measure the welfare gains from eliminating fluctuations in investment in an emerging economy such as Argentina. The estimated welfare effects are an order of magnitude higher than those for the US and arise with moderate degrees of diminishing returns to investment.

Suggested Citation

  • Reinout De Bock, 2011. "The Cost of Volatile Investment in an Emerging Economy," Economics Bulletin, AccessEcon, vol. 31(2), pages 1696-1705.
    • Handle: RePEc:ebl:ecbull:eb-11-00297
    as

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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • D6 - Microeconomics - - Welfare Economics

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