|
EconStor >
Federal Reserve Bank of Boston >
Working Paper Series, Federal Reserve Bank of Boston >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/55612
|
| | |
Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Willen, Paul | | en_US |
| dc.date.accessioned | | 2012-02-23T08:23:54Z | | - |
| dc.date.available | | 2012-02-23T08:23:54Z | | - |
| dc.date.issued | | 2004 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/55612 | | - |
| dc.description.abstract | | In this paper, we show that incomplete markets lead to trade imbalances. We use a two-period general equilibrium model with countries composed of heterogeneous households. We look at a world where, when markets are complete, countries engage in balanced trade; and we show that when some of those markets are absent, trade imbalances emerge. Market incompleteness across countries causes trade imbalances because national income in some countries is more sensitive to risky asset payoffs than in others. Market incompleteness within countries causes trade imbalances because superior risk-sharing in one country leads to a lower precautionary demand for saving. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Federal Reserve Bank of Boston Boston, Mass. | | en_US |
| dc.relation.ispartofseries | | Working paper series // Federal Reserve Bank of Boston 04-8 | | en_US |
| dc.subject.jel | | D52 | | en_US |
| dc.subject.jel | | F30 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.title | | Incomplete markets and trade | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 500707774 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Working Paper Series, Federal Reserve Bank of Boston
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|