The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate
Autor(a) principal: | |
---|---|
Data de Publicação: | 1995 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/22672 |
Resumo: | This paper presents a dynamic general equilibrium model of the real exchange rate for a semi-small open economy, within the Obstfeld-Svensson-Raziu tradition. The dynamics of the real exchange rate is determined jointly with the dynamics of capital accumulation and external debt, in a neoclassical economy with intertemporally independent preferences. Two main features of the model are shown to be crucial for the comparative dynamics results: a Bickerdicke-Robinson-Lerner condition and the consideration of imports of foreign goods for investment. If there are no imports for investment then shocks in the fundamentals (productivity and autonomous external demand) will imply a short run appreciation of the real exchange rate followed by a trajectory of depreciation. If there are imports for investment, the short run response of the total real investment is larger and will behave as a substitute for later increases in the capital stock. This implies that the behavior of the model will tend to be ambiguous. |
id |
RCAP_34cda4236653bbcd9e5877d0cf6e45bc |
---|---|
oai_identifier_str |
oai:www.repository.utl.pt:10400.5/22672 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rateOpen EconomyInvestmentFinancial MarketsMonetary PolicyExchange RatesEquilibrium ModelThis paper presents a dynamic general equilibrium model of the real exchange rate for a semi-small open economy, within the Obstfeld-Svensson-Raziu tradition. The dynamics of the real exchange rate is determined jointly with the dynamics of capital accumulation and external debt, in a neoclassical economy with intertemporally independent preferences. Two main features of the model are shown to be crucial for the comparative dynamics results: a Bickerdicke-Robinson-Lerner condition and the consideration of imports of foreign goods for investment. If there are no imports for investment then shocks in the fundamentals (productivity and autonomous external demand) will imply a short run appreciation of the real exchange rate followed by a trajectory of depreciation. If there are imports for investment, the short run response of the total real investment is larger and will behave as a substitute for later increases in the capital stock. This implies that the behavior of the model will tend to be ambiguous.ISEG - Departamento de EconomiaRepositório da Universidade de LisboaBrito, Paulo2021-12-09T10:36:30Z19951995-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/22672engBrito, Paulo. 1995. "The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate ". Instituto Superior de Economia e Gestão - DE Working papers nº 7-1995/DEinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:52:14Zoai:www.repository.utl.pt:10400.5/22672Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:07:02.479393Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
title |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
spellingShingle |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate Brito, Paulo Open Economy Investment Financial Markets Monetary Policy Exchange Rates Equilibrium Model |
title_short |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
title_full |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
title_fullStr |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
title_full_unstemmed |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
title_sort |
The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate |
author |
Brito, Paulo |
author_facet |
Brito, Paulo |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Brito, Paulo |
dc.subject.por.fl_str_mv |
Open Economy Investment Financial Markets Monetary Policy Exchange Rates Equilibrium Model |
topic |
Open Economy Investment Financial Markets Monetary Policy Exchange Rates Equilibrium Model |
description |
This paper presents a dynamic general equilibrium model of the real exchange rate for a semi-small open economy, within the Obstfeld-Svensson-Raziu tradition. The dynamics of the real exchange rate is determined jointly with the dynamics of capital accumulation and external debt, in a neoclassical economy with intertemporally independent preferences. Two main features of the model are shown to be crucial for the comparative dynamics results: a Bickerdicke-Robinson-Lerner condition and the consideration of imports of foreign goods for investment. If there are no imports for investment then shocks in the fundamentals (productivity and autonomous external demand) will imply a short run appreciation of the real exchange rate followed by a trajectory of depreciation. If there are imports for investment, the short run response of the total real investment is larger and will behave as a substitute for later increases in the capital stock. This implies that the behavior of the model will tend to be ambiguous. |
publishDate |
1995 |
dc.date.none.fl_str_mv |
1995 1995-01-01T00:00:00Z 2021-12-09T10:36:30Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/22672 |
url |
http://hdl.handle.net/10400.5/22672 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Brito, Paulo. 1995. "The Bickerdike-Robinson-Lerner condition and the dynamics of the real exchange rate ". Instituto Superior de Economia e Gestão - DE Working papers nº 7-1995/DE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - Departamento de Economia |
publisher.none.fl_str_mv |
ISEG - Departamento de Economia |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799131163769438208 |