Trade in Capital Goods and the Volatility of Net Exports and the Terms of Trade

@inproceedings{Boileauy2007TradeIC,
  title={Trade in Capital Goods and the Volatility of Net Exports and the Terms of Trade},
  author={Martin Boileauy},
  year={2007}
}
  • Martin Boileauy
  • Published 2007
Standard two-country dynamic general equilibrium models grossly underpredict the volatility of net exports and the terms of trade. We analyze whether trade in capital goods (equipment) can explain this failure. Trade in equipment accounts for about half of the trade balance of G7 countries and most of its uctuations over the 1971{1990 period. Simulation results show that a standard model with trade in nal goods generates a volatility of 0.10 for net exports and 0.52 for the terms of trade… CONTINUE READING
Highly Cited
This paper has 18 citations. REVIEW CITATIONS

From This Paper

Topics from this paper.
15 Citations
17 References
Similar Papers

References

Publications referenced by this paper.
Showing 1-10 of 17 references

Asset Market Structure and International Trade

  • A. Arvanitis, A. Mikkola
  • 1996
Highly Influential
11 Excerpts

International Trade and Business Cycles

  • M. Baxter
  • 1995
Highly Influential
4 Excerpts

Intertemporal Prices and the U.S

  • M. Burda, S. Gerlach
  • Trade Balance,
  • 1992
Highly Influential
6 Excerpts

A Theory of Demand for Products Distinguished by Place of Pro

  • P. Armington
  • 1969
Highly Influential
4 Excerpts

Does World Investment Demand Determine U.S

  • A. Warner
  • 1994
Highly Influential
3 Excerpts

An International Economy with Country-Speci c

  • T. McCurdy, N. Ricketts
  • 1995
1 Excerpt

Business Cycles with Distorting Taxes and Disaggregated Capital

  • Chang, L.-J
  • 1995

International Business Cycles: Theory and

  • D. Backus, P. Kehoe
  • Kydland,
  • 1995

Dynamics of the Trade Balance

  • D. Backus, P. Kehoe
  • Kydland,
  • 1994

Similar Papers

Loading similar papers…