Capital goods imports, the real exchange rate, and the current account
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The authors analyzes the macroeconomic consequences of changes in fiscal policy and transfers of wealth from abroad on the capital stock and real output, and shows that both have well defined long-run effects on the stock and output.About:
This article is published in Journal of International Economics.The article was published on 1995-08-01 and is currently open access. It has received 44 citations till now. The article focuses on the topics: Physical capital & Investment (macroeconomics).read more
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Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?
TL;DR: The authors assess these conjectures and find none to be systematically supported, and conclude that small firms are unable or unwilling to grow, so important scale economies go unexploited in developing countries.
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Supply-Side Effects of Disinflation Programs
TL;DR: In this paper, the short and long-run effects of disinflation programs in a two-sector economy are studied and the authors conclude that when appreciation and deficits are due to supply-side rigidities, rather than to credibility and/or price stickiness, no further policies (e.g., capital controls, incomes policies) are advisable.
Capital inflows, Dutch disease effects, and monetary policy
TL;DR: In this article, the authors investigated the effects of capital inflow on the real exchange rate in emerging market economies and the role and welfare implications of a set of monetary policy in a small open economy that is susceptible to Dutch disease.
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Capital Inflows, Dutch Disease Effects, and Monetary Policy in a Small Open Economy
TL;DR: The authors studied the role of monetary policy in a small open economy that experiences Dutch disease effects as a result of capital inflows, and examined the issue of whether such a policy should seek to address these effects from a welfare perspective.
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Terms-of-Trade Shocks and Optimal Investment: Another Look at the Laursen-Metzler Effect
TL;DR: Serven et al. as mentioned in this paper examined the consequences of permanent and transitory changes in the terms of trade in a rational-expectations model of a small open economy with intertemporally optimizing agents, and with trade in both consumption and capital goods.
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The relationship of firm growth and Q with multiple capital goods: theory and evidence from panel data on Japanese firms
Fumio Hayashi,Tohru Inoue +1 more
TL;DR: In this paper, the authors developed a Q model of investment with multiple capital goods that delivers a one-to-one relation between the growth rate of the capital aggregate and the stock market-based Q.
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Real Interest Rates, Home Goods, and Optimal External Borrowing
TL;DR: In this paper, the authors investigated the optimal tire path of consumption and external borrowing in the dependent economy model and showed that the presence of a home goods sector dampens the consumption effects of changes in interest rates.
ReportDOI
The Relation Between Firm Growth and Q with Multiple Capital Goods: Theory and Evidence from Panel Data on Japanese Firms
Fumio Hayashi,Tohru Inoue +1 more
TL;DR: In this paper, the authors derived from a model of investment with multiple capital goods a one-to-one relation between the growth rate of the capital aggregate and the stock market-based Q. Identification is achieved by combining the theoretical structure of the Q model and an assumed serial correlation structure of technology shock which is the error term in the growth-Q equation.
ReportDOI
Real Interest Rates, Home Goods, and Optimal External Borrowing
TL;DR: In this paper, the authors investigated the optimal time path of consumption and external borrowing in the dependent economy model and showed that the presence of a home goods sector dampens the consumption effects of changes in the world real interest rate.
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External Debt, Budget Deficits and Disequilibrium Exchange Rates
TL;DR: The authors investigated the sources of debt and debt difficulties for a group of Latin American countries and argued that external shocks such as oil, interest rates, world recession and the fall in real commodity prices cannot account by themselves for the problems.