LOGIN TO YOUR ACCOUNT

Username
Password
Remember Me
Or use your Academic/Social account:

CREATE AN ACCOUNT

Or use your Academic/Social account:

Congratulations!

You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.

Important!

Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message

CREATE AN ACCOUNT

Name:
Username:
Password:
Verify Password:
E-mail:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Publisher: Center for Economic Studies and Ifo Institute (CESifo) Munich
Languages: English
Types: Unknown
Subjects: E62, fiscal shocks, Latin American countries, C32, dewey330, Volatilität, Schätzung, Zwei-Länder-Modell, O54, real exchange rate, Zeitreihenanalyse, Finanzsektor, Fiscal shocks; real exchange rate; Latin American countries, Schock, Kaufkraftparität, fiscal shocks, real exchange rate, Latin American countries, Lateinamerika
ddc: ddc:330
This paper analyses the effects of fiscal shocks using a two-country macroeconomic model for output, labour input, government spending and relative prices which provides the orthogonality restrictions for obtaining the structural shocks. Dynamic simulation techniques are then applied, in particular to shed light on the possible effects of fiscal imbalances on the real exchange rate in the case of six Latin American countries. Using quarterly data over the period 1980-2006, we find that in a majority of cases fiscal shocks are the main driving force of real exchange rate fluctuations.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Ahmed S. (2003), Sources of Economic Fluctuations in Latin America and Implications for Choice of Exchange Rate Regimes, Journal of Development Economics, 72, p. 181-202.
    • Ahmed S., Ickes B.W., Wang P. and Yoo, B.S. (1993), International Business Cycle, American Economic Review, 83, p. 335-359.
    • Alexius A. (2005), Productivity Shocks and Real Exchange Rates, Journal of Monetary Economics, 52, p. 555-566.
    • Arin K.P. and Koray, F. (2008), Beggar Thy Neighbour? The Transmission of Fiscal Shocks from US to Canada, Open Economies Review, forthcoming.
    • Asea P.K. and Mendoza E.G. (1994), The Balassa-Samuelson Model: A GeneralEquilibrium Appraisal, Review of International Economics, 2, p. 244-267.
    • Baxter M. (1992), Fiscal Policy, Specialization, and Trade in the Two-Sector Model: The Return of Ricardo?, Journal of Political Economy, 100(4), 713-744.
    • Berg A., Borensztein E. and Mauro P. (2002), An Evaluation of Monetary Regime Options for Latin America, IMF Working Paper, 211.
    • Bergman, M. (1996), International Evidence on the Sources of Macroeconomic Fluctuations, European Economic Review, 40, p. 1237-1258.
    • Bianconi M. and Turnovsky S.J. (1997), International Effects of Government Expenditure in Interdependent Economies, Canadian Journal of Economics, 30, p. 57-84.
    • Binder M. and Pesaran M.H. (1999), Stochastic Growth Models and their Econometric Implications, Journal of Economic Growth, 4, p. 139-83.
    • Blanchard O. and Quah D. (1989), The Dynamic Effects of Aggregate Demand and Supply Disturbances, American Economic Review, 79, p. 655-673.
    • Blanchard O. and Perotti R. (2002), An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output, Quarterly Journal of Economics, 117, p. 1329-1368.
    • Burnside C., Eichembaum M. and Fisher J.D.M. (2004), Fiscal Shocks and Their Consequences, Journal of Economic Theory, 115, p. 89-117.
    • 2214 Valentina Bosetti, Carlo Carraro and Emanuele Massetti, Banking Permits: Economic Efficiency and Distributional Effects, February 2008
    • 2215 Assar Lindbeck, Mårten Palme and Mats Persson, Social Interaction and Sickness Absence, February 2008
    • 2216 Gary E. Bolton and Axel Ockenfels, The Limits of Trust in Economic Transactions - Investigations of Perfect Reputation Systems, February 2008
    • 2217 Hartmut Egger and Peter Egger, The Trade and Welfare Effects of Mergers in Space, February 2008
    • 2218 Dorothee Crayen and Joerg Baten, Global Trends in Numeracy 1820-1949 and its Implications for Long-Run Growth, February 2008
    • 2219 Stephane Dees, M. Hashem Pesaran, L. Vanessa Smith and Ron P. Smith, Identification of New Keynesian Phillips Curves from a Global Perspective, February 2008
    • 2220 Jerome L. Stein, A Tale of Two Debt Crises: A Stochastic Optimal Control Analysis, February 2008
    • 2221 Michael Melvin, Lukas Menkhoff and Maik Schmeling, Automating Exchange Rate Target Zones: Intervention via an Electronic Limit Order Book, February 2008
    • 2222 Raymond Riezman and Ping Wang, Preference Bias and Outsourcing to Market: A Steady-State Analysis, February 2008
    • 2223 Lars-Erik Borge and Jørn Rattsø, Young and Old Competing for Public Welfare Services, February 2008
    • 2224 Jose Apesteguia, Steffen Huck, Jörg Oechssler and Simon Weidenholzer, Imitation and the Evolution of Walrasian Behavior: Theoretically Fragile but Behaviorally Robust, February 2008
    • 2226 António Afonso and Christophe Rault, What do we really Know about Fiscal Sustainability in the EU? A Panel Data Diagnostic, February 2008
    • 2227 Sergey M. Kadochnikov and Igor M. Drapkin, Market Structure, Technological Gap and Vertical Linkage Effects from Foreign Direct Investment, February 2008
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article