Closing Small Open Economy Models

Research, Preprint OPEN
Schmitt-Grohe, Stephanie; Uribe, Martín;
  • Publisher: New Brunswick, NJ: Rutgers University, Department of Economics
  • Subject: F41 | Complete and Incomplete Asset Markets | Finanzmarkt | complete and incomplete asset markets; small open economy; stationarity | Unvollkommener Markt | Complete and Incomplete Asset Markets; Small Open Economy; Stationarity; | Small Open Economy | Kleines-offenes-Land | Anpassungskosten | Stationarity | Theorie
    • jel: jel:F41
      ddc: ddc:330

The small open economy model with incomplete asset markets features a steady state that depends on initial conditions. In addition, equilibrium dynamics posses a random walk component. A number of modifications to the standard model have been proposed to induce stationa... View more
  • References (16)
    16 references, page 1 of 2

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