Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/71244 
Autor:innen: 
Erscheinungsjahr: 
2002
Schriftenreihe/Nr.: 
Reihe Ökonomie / Economics Series No. 110
Verlag: 
Institute for Advanced Studies (IHS), Vienna
Zusammenfassung: 
In this paper we analyze the implications of status-preference, modeled as relative wealth, for the current account in a small open economy framework with capital stock dynamics. We demonstrate that the transitional dynamics of the economy is characterized by two distinct speeds of adjustment: a speed of adjustment arising from status-preference and a speed of adjustment arising from installation costs of investment. This structure implies that the current account balance depends on both speeds of adjustment as well as on the long-run equilibrium, which is a function of the degree of status-consciousness. As a consequence, the current account can exhibit non-monotonic behavior in transition to the steady-state equilibrium.
Schlagwörter: 
current account
status seeking
relative wealth
open economy dynamics
JEL: 
E21
F41
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
1.09 MB





Publikationen in EconStor sind urheberrechtlich geschützt.