International trade transmission channel of a local crisis: a simple model
We propose a linear general interdependence model of the world economy, and use United Nations Statistics Division data to estimate its parameters. This allows us to assess the propagation through the channel of international trade of an exogenous shock to one country's autonomous expenditures, thereby constructing a "vulnerability ranking" for the countries in the sample to an exogenous shock to any of them. The response of the system to a negative shock to the United States autonomous outlays is carried out as an example. Though subject to multiple caveats, these comparative statics results might be useful for policy analysis.
Volume (Year): LIV (2008)
Issue (Month): 1-2 (January-December)
|Contact details of provider:|| Postal: |
Phone: 21- 1466
Web page: http://www.depeco.econo.unlp.edu.ar/economica/ing/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:lap:journl:560. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margarita Machelett)
If references are entirely missing, you can add them using this form.