Foreign trade and equilibrium indeterminacy

Detalhes bibliográficos
Autor(a) principal: Conraria, Luís Aguiar
Data de Publicação: 2004
Outros Autores: Wen, Yi
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/1309
Resumo: Foreign Trade and Equilibrium Indeterminacy Abstract: We show that dependence of production on foreign inputs (or non-producible natural resources) can significantly increase the likelihood of indeterminacy. Payment of imported foreign factors of production may act as a semi-fixed cost, amplifying production externalities and returns to scale, making selffulfilling expectations driven busyness cycles easier to arise. This is demonstrated using a standard neoclassical growth model. Calibration exercise shows that the required increasing returns to scale can be reduced by as much as 64% based on estimated share of foreign inputs in production for OECD countries.
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spelling Foreign trade and equilibrium indeterminacyIndeterminacyFactor importsNatural resourcesCapacity utilizationExternalityReturns to scaleOpen economySunspotsSelf-fulfilling expectationsForeign Trade and Equilibrium Indeterminacy Abstract: We show that dependence of production on foreign inputs (or non-producible natural resources) can significantly increase the likelihood of indeterminacy. Payment of imported foreign factors of production may act as a semi-fixed cost, amplifying production externalities and returns to scale, making selffulfilling expectations driven busyness cycles easier to arise. This is demonstrated using a standard neoclassical growth model. Calibration exercise shows that the required increasing returns to scale can be reduced by as much as 64% based on estimated share of foreign inputs in production for OECD countries.Universidade do MinhoConraria, Luís AguiarWen, Yi20042004-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/1309enginfo: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:RCAAP2023-07-21T12:29:03Zoai:repositorium.sdum.uminho.pt:1822/1309Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:23:58.681692Repositório 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 Foreign trade and equilibrium indeterminacy
title Foreign trade and equilibrium indeterminacy
spellingShingle Foreign trade and equilibrium indeterminacy
Conraria, Luís Aguiar
Indeterminacy
Factor imports
Natural resources
Capacity utilization
Externality
Returns to scale
Open economy
Sunspots
Self-fulfilling expectations
title_short Foreign trade and equilibrium indeterminacy
title_full Foreign trade and equilibrium indeterminacy
title_fullStr Foreign trade and equilibrium indeterminacy
title_full_unstemmed Foreign trade and equilibrium indeterminacy
title_sort Foreign trade and equilibrium indeterminacy
author Conraria, Luís Aguiar
author_facet Conraria, Luís Aguiar
Wen, Yi
author_role author
author2 Wen, Yi
author2_role author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Conraria, Luís Aguiar
Wen, Yi
dc.subject.por.fl_str_mv Indeterminacy
Factor imports
Natural resources
Capacity utilization
Externality
Returns to scale
Open economy
Sunspots
Self-fulfilling expectations
topic Indeterminacy
Factor imports
Natural resources
Capacity utilization
Externality
Returns to scale
Open economy
Sunspots
Self-fulfilling expectations
description Foreign Trade and Equilibrium Indeterminacy Abstract: We show that dependence of production on foreign inputs (or non-producible natural resources) can significantly increase the likelihood of indeterminacy. Payment of imported foreign factors of production may act as a semi-fixed cost, amplifying production externalities and returns to scale, making selffulfilling expectations driven busyness cycles easier to arise. This is demonstrated using a standard neoclassical growth model. Calibration exercise shows that the required increasing returns to scale can be reduced by as much as 64% based on estimated share of foreign inputs in production for OECD countries.
publishDate 2004
dc.date.none.fl_str_mv 2004
2004-01-01T00:00:00Z
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/1822/1309
url http://hdl.handle.net/1822/1309
dc.language.iso.fl_str_mv eng
language eng
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.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
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