Title of article
Consumption,governmentspending,andtherealexchangerate
Author/Authors
Morten O. Ravn، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
20
From page
215
To page
234
Abstract
UsingpanelstructuralVARanalysisandquarterlydatafromfourindustrialized
countries,wedocumentthatanincreaseingovernmentpurchasesraisesoutputand
private consumption,deterioratesthetradebalance,anddepreciatestherealexchange
rate.ThispatternofcomovementposesapuzzleforbothneoclassicalandKeynesian
models.Anexplanationbasedonthedeep-habitmechanismisproposed.Anestimated
two-countrymodelwithdeep-habitsisshowntoreplicatewelltheobservedresponses
of output,consumption,andthetradebalance,andtheinitialresponseofthereal
exchangeratetoanestimatedgovernmentspendingshock
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846518
Link To Document