Dynamics of Trade and Heterogeneity in General Equilibrium (very preliminary and incomplete)
نویسندگان
چکیده
This paper develops a dynamic general equilibrium model which tries to reconcile the observation that aggregate movements of exports and imports are "disconnected" from real exchange rate movements, while rm-level exports co-move signi cantly with the real exchange rate. Firms are heterogenous, facing recurrent aggregate and product-speci c productivity shocks, choose which goods to export, and decide to innovate and drop their products endogenously. We calibrate and estimate the model with both aggregate and rm level data from Japan.
منابع مشابه
Investigation and Comparison of the Welfare and Trade Effects of Iran Free Trade Agreement with Turkey, India and Pakistan countries: Computable General Equilibrium Model
Today, preferential and free trade agreements play an effective role in expanding trade in goods and services at the international level and as common practice in business planning and facilitating trade. The purpose of this article is to examine the trade and welfare effects of Iranchr('39')s free trade agreement with Turkey, India and Pakistan. For this purpose, using the Computable General E...
متن کاملTrade Liberalization and International Competitiveness in Iran: An Application of Computable General Equilibrium (CGE) Model
Trade liberalization is often the core attention of foreign economic strategies in developing countries. Findings in the literature confirm a significant effect of free trade on developing economies through which the economic sectors benefit from technology transfer and spillovers and increasing production capacities and input productivity leading to international competitiveness. On the other...
متن کاملInvestigating the Effect of Trade Shocks on employment in tradable and non-tradable sectors in Iran: A Dynamic Stochastic General Equilibrium Model (DSGE)
The aim of this paper is the analysis of trade shocks on tradable and non-tradable employment. To do so, a dynamic stochastic general equilibrium model is designed for Iran economy and the sectors of model are tradable, non-tradable and import. The variables related to foreign trade sector are nominal and real exchange rate, the law of one price gap and terms of trade. The structural parameters...
متن کاملThe Impact of Monetary and Exchange Policies on the Country’s Trade balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) models
This paper uses the framework of new Keynesian school and the literature of the Dynamic Stochastic General Equilibrium (DSGE) model to build a general model that can be estimated for Iran economy. By simulating this model, the effects of the implementation of monetary and foreign exchange policies through policy instruments including bank interest rate, central bank international reserves and t...
متن کاملThe effects of trade sanctions on Iran;s economic Using the Computable General Equilibrium: Focusing on Production and prices
The main objective of this study is to assess the economic impacts of sanctions against Iran. This analysis was performed using the computable general equilibrium (CGE) model with a focus on exports, imports, production, and price levels. After calibrating the CGE model and measuring the values of exogenous parameters and variables, the study assessed the economic impacts of sanctions on Iran’s...
متن کامل