EconStor >
University of Kent >
School of Economics, University of Kent >
School of Economics Discussion Papers, University of Kent >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/50630
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorChristopoulos, Dimitris K.en_US
dc.contributor.authorGente, Karineen_US
dc.contributor.authorLeón-Ledesma, Miguel A.en_US
dc.date.accessioned2010-12-28en_US
dc.date.accessioned2011-10-21T16:53:30Z-
dc.date.available2011-10-21T16:53:30Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/50630-
dc.description.abstractEmpirical evidence suggests that real exchange rates (RER) behave differently in developed and developing countries. We develop an overlapping generations two-sector exogenous growth model in which RER determination may depend on the country's capacity to borrow from international capital markets. The country faces a constraint on capital in ows. With high domestic savings, the RER only depends on productivity spread between sectors (Balassa-Samuelson effect). If the constraint is too tight and/or domestic savings too low, the RER depends on both net foreign assets (transfer effect) and productivity. We then analyze the empirical implications of the model and find that, in accordance with the theory, the RER is mainly driven by productivity and net foreign assets in constrained countries and by productivity in unconstrained countries.en_US
dc.language.isoengen_US
dc.publisherUniv. of Kent, School of Economics Canterburyen_US
dc.relation.ispartofseriesSchool of Economics discussion papers 10,11en_US
dc.subject.jelE39en_US
dc.subject.jelF32en_US
dc.subject.jelF41en_US
dc.subject.ddc330en_US
dc.subject.keywordreal exchange rateen_US
dc.subject.keywordcapital in ows constrainten_US
dc.subject.keywordoverlapping generationsen_US
dc.titleNet foreign assets, productivity and real exchange rates in constrained economiesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn642532974en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:School of Economics Discussion Papers, University of Kent

Files in This Item:
File Description SizeFormat
642532974.pdf635.88 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.