@techreport{Bhattacharjee2008Productivity,
abstract = {We show that a flex-price two-sector open economy DSGE model can explain the poor degree of international risk sharing and exchange rate disconnect. We use a suite of model evaluation measures and examine the role of (i) traded and non-traded sectors; (ii) financial market incompleteness; (iii) preference shocks; (iv) deviations from UIP condition for the exchange rates; and (v) creditor status in net foreign assets. We find that there is a good case for both traded and non-traded productivity shocks as well as UIP deviations in explaining the puzzles.},
address = {Canterbury},
author = {Arnab Bhattacharjee and Jagjit S. Chadha and Qi Sun},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E32; F32; F41; 330; current account dynamics; real exchange rates; incomplete markets; financial frictions; Ungleichgewichtiges Wachstum; Offene Volkswirtschaft; Home Bias Puzzle; Produktivit\"{a}t; Konjunktur; Dynamisches Gleichgewicht; OECD-Staaten},
language = {eng},
number = {08,08},
publisher = {Univ. of Kent, School of Economics},
title = {Productivity, preferences and UIP deviations in an open economy business cycle model},
type = {School of Economics discussion papers},
url = {http://hdl.handle.net/10419/50633},
year = {2008}
}
