Industrial structure and monetary policy in a small open economy

We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a tractable canonical system in domestic inflation and the output gap. We employ this framework to analyze the macroeconomic implications of three alternative rule

A structuralist model of the small open economy in the short, medium and long run

to modify utility to account for habit persistence and to incorporate capital adjustment costs. This paper study a small open economy general equilibrium model along with asset pricing formula based on the lognormality of the disturbance distribution. Our results stipulate that extending models with habit

Using an estimated dynamic stochastic general equilibrium model, I show that shocks to a common international stochastic trend explain on average about 10 % of the variability of output in several small developed economies. These shocks explain roughly twice as much of the volatility of consumption

We propose a framework to generate village economic accountsandvillagebalanceofpayments accounts from a micro-level household survey. Using the Townsend-Thai data, we create the village economic and balance of payments accounts ofruralvillagesinThailand. We then study village economies through

Working papers in this series are preliminary and are circulated to stimulate discussion and critical comment. These papers are not subject to CBO’s formal review and editing processes. The analysis and conclusions expressed in them are those of the authors and should not be interpreted as those of the Congressional Budget Office. References in publications should be cleared with the authors.

Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. ISSN 1701-9397 © 2007 Bank of CanadaAcknowledgements

Citation for published version (APA):

We study the effects of demographic and fiscal shocks on the growth performance of an industrialized small open economy. We construct an overlapping-generations model which incorporates a realistic description of the mortality process. Agents engage in educational activities at the start of life