Terms of trade shocks and the current account in a unified currency area

2001 ◽  
Vol 13 (8) ◽  
pp. 1179-1188
Author(s):  
L. Sahely ◽  
R. Darius ◽  
O. Williams
Keyword(s):  
Current Account ◽  
Terms Of Trade ◽  
Trade Shocks ◽  
Currency Area ◽  
The Current Account

scholarly journals Ocena efektu Harbergera-Laursena-Metzlera w polskim sektorze rolno-żywnościowym

2019 ◽  
Vol 106 (1) ◽  
pp. 36-50
Author(s):  
Jacek Strojny
Keyword(s):  
Current Account ◽  
Vector Autoregression ◽  
Value Added ◽  
Terms Of Trade ◽  
The Other ◽  
Food Sector ◽  
Exogenous Factor ◽  
Trade Shocks ◽  
Gross Value Added ◽  
The Current Account

The aim of the study was to asses the Harberger-Laursen-Metzler effect in Polish agro-food sector. The analysis covers period of 2002-2017. There was applied the vector autoregression (VAR) methodology. The outcome of the research revealed that permanent deterioration in terms of trade contributed to the current account of Polish agribusiness sector improvement. The temporary effect of terms of trade shocks was not indentified. Additionally, the research enabled recognition of gross value added (GVA) as the most exogenous factor of the VAR system. On the other hand most endogenous factor of the model is the current account. The variable permanent terms of trade is more exogenous factor than the current account.

scholarly journals Terms-of-Trade Shocks and the Current Account

2005 ◽  
Vol 20 (4) ◽  
pp. 789-808 ◽  
Author(s):  
Wai Mun Chia ◽  
Joseph D. Alba
Keyword(s):  
Current Account ◽  
Terms Of Trade ◽  
Trade Shocks ◽  
The Current Account

scholarly journals Harberger-Laursen-Metzler Effect with Modified Becker-Mulligan Preference by Dynamic Optimization

2016 ◽  
Vol 2016 ◽  
pp. 1-8
Author(s):  
Deng-Shan Wang ◽  
Miao Jin ◽  
Zeng-Gang Guo
Keyword(s):  
Current Account ◽  
Time Preference ◽  
Current Account Deficit ◽  
Terms Of Trade ◽  
Planning Period ◽  
Trade Shocks ◽  
Endogenous Time Preference ◽  
Theoretical Results ◽  
A Current ◽  
The Current Account

We investigate the effects of terms-of-trade shocks on the spending and current account where households with the modified Becker-Mulligan endogenous time preference maximize their utility over an infinite planning period. Our results show that, with the modified Becker-Mulligan preference, the effect of the deterioration in terms of trade on the current account depends on people’s characters. However, with the second preference we have considered, the deterioration in terms of trade will result in a current account deficit, which is the same as Obstfeld (1982), where households with Uzawa endogenous time preference are considered; deterioration in terms of trade leads to a decline in the current account. These theoretical results are consistent with the empirical evidence by numerical simulations.

The Response of the Current Account to Terms of Trade Shocks: Persistence Matters

2003 ◽  
Vol 03 (143) ◽  
pp. 1 ◽  
Author(s):  
Paul Cashin ◽  
Christopher J. Kent ◽  
◽  
Keyword(s):  
Current Account ◽  
Terms Of Trade ◽  
Trade Shocks ◽  
The Current Account

scholarly journals Terms of Trade Shocks and the Current Account

1998 ◽  
Vol 98 (177) ◽  
pp. 1 ◽  
Author(s):  
Paul Cashin ◽  
C. John McDermott ◽  
◽  
Keyword(s):  
Current Account ◽  
Terms Of Trade ◽  
Trade Shocks ◽  
The Current Account
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