Fiche du document
2015
- handle: 10670/1.xauhka
- halshs: halshs-01252524
info:eu-repo/semantics/OpenAccess
Mots-clés
Non-traded Goods Fiscal Shocks Investment Current Account Endogenous markup. F - International Economics/F.F4 - Macroeconomic Aspects of International Trade and Finance/F.F4.F41 - Open Economy Macroeconomics E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook/E.E6.E62 - Fiscal Policy E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E22 - Investment • Capital • Intangible Capital • Capacity F - International Economics/F.F3 - International Finance/F.F3.F32 - Current Account Adjustment • Short-Term Capital Movements L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change • Industrial Price IndicesSujets proches
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Olivier Cardi et al., « Fiscal Shocks in a Two-Sector Open Economy with Endogenous Markups », Archive Ouverte d'INRAE, ID : 10670/1.xauhka
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Résumé
We use a two-sector neoclassical open economy model with traded and non-traded goods and endogenous markups to investigate the effects of temporary fiscal shocks. One central finding is that theory can be reconciled with evidence once we allow for endogenous markups and assume that the traded sector is more capital intensive than the non-traded sector. More precisely, while both ingredients are essential to produce the real exchange rate depreciation, only the second ingredient is necessary to account for the simultaneous decline in investment and the current account, in line with the evidence.