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Investment during the Korean financial crisis: A structural econometric approach

  • Jae Sim

    (Boston University)

  • Simon Gilchrist

    (Boston University and NBER)

Although our estimates suggest that foreign-denominated debt had relatively little effect on aggregate investment spending for the Korean economy during this crisis episode, counterfactual experiments imply sizeable contractions in investment through this mechanism for economies that are more heavily dependent on foreign-denominated debt.

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File URL: https://www.economicdynamics.org/meetpapers/2007/paper_53.pdf
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Paper provided by Society for Economic Dynamics in its series 2007 Meeting Papers with number 53.

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Date of creation: 2007
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Handle: RePEc:red:sed007:53
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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