The Effects of Macroeconomic Shocks in a Basic Equilibrium Framework
The macroeconomic effects of random shocks to output, the terms of trade, and the real interest rate are examined using an intertemporal equilibrium model of a small open, endowment economy. Equilibrium stochastic processes are computed numerically and compared with actual stylized facts. The model rationalizes the Harberger-Laursen-Metzler effect, but cannot produce countercyclical net exports and large real exchange rate fluctuations. The quantitative implications of the model are compared with the implications of the elasticities approach, and their sensitivity to changes in preference parameters and in the persistence of shocks is examined.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 39 (1992)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:39:y:1992:i:4:p:855-889. 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: (Daniel Foley)
If references are entirely missing, you can add them using this form.