An equilibrium model of 'global imbalances' revisited

Körner, Finn Marten

An equilibrium model of 'global imbalances' revisited

dc.contributor.author	Körner, Finn Marten	de
dc.date.accessioned	2024-04-08T08:46:24Z
dc.date.available	2024-04-08T08:46:24Z
dc.date.created	2011-12-14
dc.date.issued	2011
dc.description.abstract	?Global imbalances? are almost universally regarded as a disequilibrium phenomenon. Caballero, Farhi, and Gourinchas (2008) challenge this notion with their dynamic general equilibrium model of global imbalances. The authors conclude that current account deficit nations need not worry about long-lasting deficits as long as the model is in equilibrium. The joint model in this paper combines the two model extensions for exchange rates and FDI which are disjunct in the original model. An analytical solution to the new joint model is neither as straightforward as for the separate models nor can previous results from calibrated simulation be confirmed without restriction. The model is highly dependent on parameter assumptions: A variation of calibrated parameters highlights the prime impact of investment costs previously assumed away. Sustainable equilibrium paths for global imbalances are much narrower in updated simulations than previously predicted. Policy recommendations on the sustainability of international debt holdings therefore need to be a lot more cautious.	en
dc.identifier.swb	354846701
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5547
dc.identifier.urn	urn:nbn:de:bsz:100-opus-6679
dc.language.iso	eng
dc.relation.ispartofseries	Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung; 33
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	International debt	en
dc.subject	Financial market development	en
dc.subject	Foreign direct investment	en
dc.subject	Real exchange rate	en
dc.subject	International macro-finance	en
dc.subject.ddc	330
dc.subject.gnd	Kreditmarkt	de
dc.subject.gnd	Auslandsinvestition	de
dc.title	An equilibrium model of 'global imbalances' revisited	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.export.bibtex	@techreport{Körner2011, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5547}, author = {Körner, Finn Marten}, title = {An equilibrium model of 'global imbalances' revisited}, year = {2011}, school = {Universität Hohenheim}, series = {Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung}, }
local.export.bibtexAuthor	Körner, Finn Marten
local.export.bibtexKey	Körner2011
local.export.bibtexType	@techreport
local.faculty.number	3	de
local.institute.number	520	de
local.opus.number	667
local.series.issueNumber	33
local.series.title	Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

Files

Original bundle

Now showing 1 - 1 of 1

Name:: 33_2011.pdf
Size:: 1.6 MB
Format:: Adobe Portable Document Format
Description:: Open Access Fulltext

Download

Collections

Institut für Volkswirtschaftslehre
Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung