Evaluating International Agricultural Policies using a Dynamic Nonlinear Imperfectly competitive Spatial Equilibrium Model

A dynamic equilibrium model of imperfectly integrated financial markets

This paper analyzes the determination of global equity portfolios and stock returns in the context of imperfectly integrated stock markets. We consider a continuous-time, two-country endowment economy, where the level of financial integration is captured by a proportional tax on foreign dividends. Despite the investor heterogeneity induced by this tax, we obtain approximate closed-form expressi...

Spatial Equilibrium Modeling with Imperfectly Competitive Markets: An Application to Rice Trade

The Role of International Financial Integration in Production and Inflation Fluctuations in Iran: Using a Dynamic Stochastic General Equilibrium Model

The effects of International financial integration on the fluctuations of variables in response to shocks are a matter of heavily concentrated literature of the business cycle in recent years. In this paper, a New Keynesian DSGE model is developed in which there is a channel for capital account changes through the foreign deposit's inflow and outflow. Then the effects of financial integration a...

A Dynamic Equilibrium Model of International Portfolio Holdings: Comment By

ONE OF THE MAIN PUZZLES in international finance is portfolio home bias: typical investors hold most of their wealth in domestic assets (despite the fact that international diversification permits a sizable reduction in risk). Serrat (2001) claims that the nontradable nature of many consumption goods explains home bias. He presents a model of a world with two countries that receive tradable and...

Formulation and Analysis of a Dynamic Spatial Price Equilibrium Model

The spatial price equilibrium model begins with the Hitchcock-Koopmans transportation problem as described by Dantzig (1963). The data for this model includes a set of suppliers I and a set of markets J , with supplies ai, demands bj, transport costs cij from supplier i to market j. Cast as a planning problem, this linear program seeks a transport schedule which minimizes the cost of supplying ...