Macroeconomic Volatility after Trade and Capital Account Liberalization

What are the equilibrium effects of trade and capital liberalization on consumption smoothing? This question is addressed by studying the response to productivity shocks in a baseline two country, two goods, incomplete market model, where foreign b...

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Bibliographic Details
Main Author:	Pancaro, Cosimo
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCELERATOR ADVANCED COUNTRIES ADVANCED ECONOMIES ADVANCED ECONOMY ALLOCATION OF CAPITAL AMOUNT OF COLLATERAL AMOUNT OF DEBT BANK POLICY BENCHMARK BOND BORROWER BUDGET CONSTRAINT BUSINESS CYCLE BUSINESS CYCLES CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL FLOWS CAPITAL MOBILITY CAPITAL SHARE CAPITAL STOCK CENTRAL BANK COLLATERAL CONSUMPTION SMOOTHING CREDIT MARKET DEBT DEBTS DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DOMESTIC CONSUMPTION DOMESTIC PRICE DOMESTIC PRICE OF IMPORTS DURABLE DURABLE GOODS ECONOMIC DEVELOPMENT ECONOMIC FLUCTUATIONS ECONOMIC VOLATILITY ELASTICITY ELASTICITY OF LABOR SUPPLY ELASTICITY OF SUBSTITUTION EMERGING ECONOMIES EMERGING ECONOMY EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUILIBRIUM EXPECTED UTILITY EXPORTS EXTERNAL ASSETS EXTERNAL SHOCKS FINAL GOODS FINANCIAL DEVELOPMENT FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL OPENNESS FOREIGN ASSET FOREIGN ASSET POSITION FOREIGN ASSETS FOREIGN GOODS FOREIGN MARKETS FOREIGN TECHNOLOGIES FREE TRADE GDP GENERAL EQUILIBRIUM GLOBALIZATION GROWTH VOLATILITY HOLDING HOME COUNTRY IMPACT OF TRADE IMPORT SHARE INCOME INCOME SHOCK INCOMPLETE MARKETS INDUSTRY TRADE INSURANCE INTEREST RATE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL BANK INTERNATIONAL BORROWING INTERNATIONAL BUSINESS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL TRADE INTERNATIONAL TRANSPORTATION LENDERS LIBERALIZATION LOAN MACROECONOMIC INSTABILITY MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MACROECONOMICS MARGINAL COST MARGINAL UTILITY MARGINAL UTILITY OF CONSUMPTION MARGINAL VALUE MARKET IMPERFECTIONS MARKET INTEGRATION MARKET REFORMS MICRO DATA MONETARY POLICY NET EXPORTS NON-TARIFF BARRIERS OPEN ECONOMIES OPEN ECONOMY OPENNESS OPTIMIZATION OUTPUT PERFECT COMPETITION POLITICAL ECONOMY PORTFOLIO PORTFOLIO FLOWS POSITIVE EFFECTS PROCESS OF INTEGRATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY REAL ESTATE RETURN RISK SHARING SHARE OF WORLD TRADE SMALL COUNTRY SPECIALIZATION TARIFF BARRIERS TERMS OF TRADE TRADE BALANCE TRADE COSTS TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADING TRANSMISSION OF PRODUCTIVITY TRANSPORT COSTS TROUGH UTILITY FUNCTION VALUE OF COLLATERAL VALUE OF EXPORTS VOLATILITY WAGE RATE WEALTH WEALTH EFFECT WORLD ECONOMY WORLD TRADE
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101006152610 http://hdl.handle.net/10986/3923