Robustness of Macroeconomic Indicators of Capital Mobility /

The performance of macroeconomic indicators of capital mobility is examined in the context of an intertemporal equilibrium model of a small open economy. Recursive numerical solution methods are used to compute measures of consumption smoothing, savings-investment correlation, and the variability an...

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Bibliographic Details
Main Author: Mendoza, Enrique
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1992.
Series:IMF Working Papers; Working Paper ; No. 1992/111
Online Access:Full text available on IMF
Description
Summary:The performance of macroeconomic indicators of capital mobility is examined in the context of an intertemporal equilibrium model of a small open economy. Recursive numerical solution methods are used to compute measures of consumption smoothing, savings-investment correlation, and the variability and output-correlation of investment that characterize the model in the presence of income disturbances. None of these statistics is a reliable indicator of capital mobility unless information regarding differences in preferences, technology, and the nature of stochastic shocks can be taken into account.
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Physical Description:1 online resource (40 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students