Journal ArticleDOI
A general-equilibrium intertemporal model of an open economy
John S. Chipman,Guoqiang Tian +1 more
TLDR
In this paper, a general-equilibrium intertemporal model of a country engaged in international trade is developed, which can be used to address a wide variety of issues of interest under the assumption that prices of tradable commodities (consumer goods and capital goods) and interest rate are exogenous to the country.Abstract:
This paper develops a very general (general-equilibrium) intertemporal model of a country engaged in international trade which can be used to address a wide variety of issues of interest — in particular, econometric application — under the assumption that prices of tradable commodities (consumer goods and capital goods) and the interest rate are exogenous to the country. It allows for an arbitrarily large number of commodities which are distinguished into seven categories and for finite or infinite periods of time. This model can be used to draw various policy conclusions. We investigate how current net imports, the balance of payments on current account, current consumption expenditure, next-period bondholdings, current wealth, and current internal prices will react to exogenous changes in current external prices, the current interest rate, current taxes, current factor endowments, and current-period bondholdings. This paper also considers the integrability of net-import demand functions.read more
Citations
More filters
Journal ArticleDOI
Determinants and matrices. By A. C. Aitken. Pp. vii, 135. 4s. 6d. 1939. University Mathematical Texts, 1. (Oliver and Boyd)
TL;DR: In this paper, the authors show that if a is regular, then the ratio of 1.1 (n
(1.1) √ n (1)
√ 1.
Book
The Economics of Input-Output Analysis
TL;DR: In this paper, a survey of the most recent developments in input-output analysis and their applications is presented, helping us to examine questions such as: which industries are competitive? What are the multiplier effects of an investment program? How do environmental restrictions impact on prices? Linear programming and national accounting are introduced and used to resolve issues such as the choice of technique, the comparative advantage of a national economy, its efficiency and dynamic performance.
Journal ArticleDOI
The Location of Comparative Advantages on the Basis of Fundamentals Only
Thijs ten Raa,Pierre Mohnen +1 more
TL;DR: In this article, a new way to locate the comparative advantages of two economies linked by international trade is proposed, based on a competitive benchmark based only on the fundamentals of the two economies: endowments, preferences and technologies.
Book ChapterDOI
Closed-Form Solutions of General Intertemporal Consumption-Maximization Models*
John S. Chipman,Guoqiang Tian +1 more
TL;DR: In this paper, explicit representations for very general (discrete and continuous-time) intertemporal consumption-maximization models which allow the instantaneous preferences of the consumer and the time-preference factors to vary over time and for the non-existence of utility functions, many commodities, and a wide class of preferences which do not necessarily satisfy the so-called "regularity conditions" (such as differentiability, strict convexity, boundedness, or continuity) were considered.
Posted Content
The location of comparative advantages on the basis of fundamentals only
Thijs ten Raa,Pierre Mohnen +1 more
TL;DR: In this article, the comparative advantages of Canada and Europe on the basis of their fundamentals only: endowments, technologies, and preferences are located, and the Canadian advantage compared to Europe is in minerals, machines and clothing & footwear.
References
More filters
Book
Recursive methods in economic dynamics
TL;DR: In this article, a deterministic model of optimal growth is proposed, and a stochastic model is proposed for optimal growth with linear utility and linear systems and linear approximations.
Posted Content
Debt, Deficits and Finite Horizons
TL;DR: In this article, the effects of the horizon index on the steady state interest rate and the dynamic effects of government deficit finance on the economic system were investigated and a simple analytical model was developed in which the horizon of agents is a parameter which can be chosen arbitrarily.
Journal ArticleDOI
Debt, Deficits, and Finite Horizons
TL;DR: In this article, the effects of the horizon index on the steady state interest rate and the dynamic effects of government deficit finance on the economic system were investigated and a simple analytical model was developed in which the horizon of agents is a parameter which can be chosen arbitrarily.
Book
Cost and production functions
TL;DR: In this paper, the authors present a mathematical interpretation of the duality between cost and production function, and present a heuristic principle of minimum costs and a Cobb-Douglas production function.
Journal ArticleDOI
Interest rates and currency prices in a two-country world
TL;DR: In this paper, a theoretical study of the determination of prices, interest rates and currency exchange rates, set in an infinitely-lived two-country world which is subject both to stochastic endowment shocks and to monetary instability, is presented.