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:

Full metadata record

DC FieldValueLanguage
dc.contributor.authorBhattacharjee, Arnaben_US
dc.contributor.authorChadha, Jagjit S.en_US
dc.contributor.authorSun, Qien_US
dc.description.abstractWe 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.en_US
dc.publisherUniv. of Kent, School of Economics Canterburyen_US
dc.relation.ispartofseriesSchool of Economics discussion papers 08,08en_US
dc.subject.keywordcurrent account dynamicsen_US
dc.subject.keywordreal exchange ratesen_US
dc.subject.keywordincomplete marketsen_US
dc.subject.keywordfinancial frictionsen_US
dc.subject.stwUngleichgewichtiges Wachstumen_US
dc.subject.stwOffene Volkswirtschaften_US
dc.subject.stwHome Bias Puzzleen_US
dc.subject.stwDynamisches Gleichgewichten_US
dc.titleProductivity, preferences and UIP deviations in an open economy business cycle modelen_US
dc.typeWorking Paperen_US
Appears in Collections:School of Economics Discussion Papers, University of Kent

Files in This Item:
File Description SizeFormat
576822485.pdf406.48 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.