Preference Structure and Volatility in a Financially Integrated World
This paper investigates a two-country model of capital accumulation with country-specific production externalities. The main concern of our discussion is to explore the presence of equilibrium indeterminacy in an open-economy setting. In contrast to the existing studies on equilibrium indeterminacy in small-open economies, the present paper demonstrates that opening up international trade and financial interactions between two counties does not necessarily enhance the possibility of indeterminacy of equilibrium. It is shown that the results depend heavily upon not only on the degree of external increasing returns but also on the preference structures.
|Date of creation:||Feb 2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www2.econ.osaka-u.ac.jp/library/global/e_HP/e_g_shiryo.html|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Ghiglino & Marielle Olszak-Duquenne, 2004.
"On the Impact of Heterogeneity on Indeterminacy,"
Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva
2004.09, Institut d'Economie et Econométrie, Université de Genève.
- Roger E. A. Farmer & Amartya Lahiri, 2005.
"A Two-Country Model of Endogenous Growth,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 68-88, January.
- Aguiar-Conraria, Luis & Wen, Yi, 2004.
"Foreign Trade and Equilibrium Indeterminacy,"
04-09, Cornell University, Center for Analytic Economics.
- Baxter, Marianne & Crucini, Mario J, 1995.
"Business Cycles and the Asset Structure of Foreign Trade,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(4), pages 821-54, November.
- Marianne Baxter & Mario J. Crucini, 1992. "Business cycles and the asset structure of foreign trade," Discussion Paper / Institute for Empirical Macroeconomics 59, Federal Reserve Bank of Minneapolis.
- Baxter, M. & Crucini, M., 1991. "Business Cycles and the Asset Structure of Foreign Trade," RCER Working Papers 316, University of Rochester - Center for Economic Research (RCER).
- Marianne Baxter & Mario J. Crucini, 1994. "Business Cycles and the Asset Structure of Foreign Trade," NBER Working Papers 4975, National Bureau of Economic Research, Inc.
- Pelloni, A. & Waldmann, R., 1997.
"Stability Properties in a Growth Model,"
Economics Working Papers
eco97/11, European University Institute.
- Nishimura, Kazuo & Shimomura, Koji, 2002. "Indeterminacy in a dynamic small open economy," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 271-281, December.
- Wen, Yi, 2001.
"Understanding self-fulfilling rational expectations equilibria in real business cycle models,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 25(8), pages 1221-1240, August.
- Wen, Yi, 2000. "Understanding Self-Fulfilling Rational Expectations Equilibria in Real Business Cycle Models," Working Papers 00-02, Cornell University, Center for Analytic Economics.
- Weder, Mark, 2001.
"Indeterminacy in a Small Open Economy Ramsey Growth Model,"
Journal of Economic Theory,
Elsevier, vol. 98(2), pages 339-356, June.
- Weder, Mark, 2000. "Indeterminacy in a Small Open Economy Ramsey Growth Model," CEPR Discussion Papers 2585, C.E.P.R. Discussion Papers.
- Nishimura, Kazuo & Shimomura, Koji, 2002.
"Trade and Indeterminacy in a Dynamic General Equilibrium Model,"
Journal of Economic Theory,
Elsevier, vol. 105(1), pages 244-260, July.
- Koji Shimomura & Kazuo Nishimura, 2001. "Trade and Indeterminacy in a Dynamic General Equilibrium Model," Discussion Paper Series 117, Research Institute for Economics & Business Administration, Kobe University.
- Meng, Qinglai & Velasco, Andres, 2004. "Market imperfections and the instability of open economies," Journal of International Economics, Elsevier, vol. 64(2), pages 503-519, December.
- Kazuo Nishimura & Koji Shimomura, 2006. "Indeterminacy in a dynamic two-country model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(2), pages 307-324, October.
- Farmer, Roger E A & Lahiri, Amartya, 2002.
"Economic Growth in an Interdependent World Economy,"
CEPR Discussion Papers
3250, C.E.P.R. Discussion Papers.
- Roger E. A. Farmer & Amartya Lahiri, 2006. "Economic Growth in an Interdependent World Economy," Economic Journal, Royal Economic Society, vol. 116(514), pages 969-990, October.
- Mino, Kazuo, 2008. "Financial integration and volatility in a two-country world," MPRA Paper 16953, University Library of Munich, Germany.
- Mino, Kazuo, 2001. "Indeterminacy and Endogenous Growth with Social Constant Returns," Journal of Economic Theory, Elsevier, vol. 97(1), pages 203-222, March.
- Qinglai Meng & Andrés Velasco, 2003. "Indeterminacy in a small open economy with endogenous labor supply," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 661-669, October.
When requesting a correction, please mention this item's handle: RePEc:osk:wpaper:0805. 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: (Atsuko SUZUKI)
If references are entirely missing, you can add them using this form.