scholarly journals Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy

2020 ◽  
Author(s):  
Mattia Di Ubaldo ◽  
Iulia Siedschlag
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Firm Level ◽  
Knowledge Based ◽  
Knowledge Based Capital

scholarly journals Determinants of R&D offshoring: firm-level evidence from a small open economy

2018 ◽  
Vol 35 (2) ◽  
pp. 529-553 ◽  
Author(s):  
Gavin Murphy ◽  
Iulia Siedschlag
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Firm Level

scholarly journals Adjustment Costs and Nominal Rigidities in a Small Open Economy / Anpassungskosten und nominelle Rigiditäten in einer kleinen offenen Volkswirtschaft

2002 ◽  
Vol 222 (4) ◽  
Author(s):  
Alfred Maußner
Keyword(s):  
Time Series ◽  
Utility Function ◽  
Open Economy ◽  
Small Open Economy ◽  
Adjustment Costs ◽  
Monetary Shocks ◽  
Firm Level ◽  
Current Period ◽  
The Business Cycle ◽  
Simulated Time

SummaryWhat does account for the persistence of monetary shocks in dynamic general equilibrium models of the business cycle? A number of papers have dealt with that question and point at labor market frictions besides those introduced by overlapping wage contracts.In this paper I investigate an obvious source of persistence, namely small adjustment costs of labor at the firm level. These introduce indeed hump shaped impulse responses of hours worked in simulated time series. Compared with a benchmark model without nominal and real frictions my model outperforms the former in most respects.However, its account of the time series properties of monetary variables is not satisfactory. This holds true for closely related models that change the current period utility function, that introduce money into the utility function, or that posit a cash in advance constraint. I take this as suggestive to think about more sophisticated models of money demand.

scholarly journals Don't Put All Your Eggs in Foreign Baskets

Económica ◽  
2020 ◽  
Vol 66 ◽  
pp. 016
Author(s):  
Santiago Camara
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Financial Crises ◽  
Small Open Economy ◽  
Balance Sheet ◽  
Firm Level ◽  
Present Evidence ◽  
Exporting Firms ◽  
Balance Sheet Effects ◽  
Level Data

I analyze the sluggish response of exports during and after financial crises using firm level data for two countries-episodes: Argentina 2001 and Peru 1998 crises. I find that both incumbent exporting firms do not expand and that there’s no significant entry of new exporting firms. Furthermore, I present evidence that suggests that the export elasticity to the real exchange rate is asymmetric, smaller for depreciations than for appreciations. I build and estimate a DSGE model for a small open economy where exporting entrepreneurs are subject to financial frictions and balance sheet effects in order to try and explain these stylized facts. Although these frictions decrease the response of exports to movements in the exchange rate, I use computational exercises to show that they are not enough to explain the empirical results.

scholarly journals Productivity and International Trade: Firm Level Evidence from a Small Open Economy

2008 ◽  
Vol 144 (4) ◽  
pp. 774-801 ◽  
Author(s):  
Martin Andersson ◽  
Hans Lööf ◽  
Sara Johansson
Keyword(s):  
International Trade ◽  
Open Economy ◽  
Small Open Economy ◽  
Firm Level

The long-run stability of a small, open economy under crawling peg regime

2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Risk Premium ◽  
Small Open Economy ◽  
Exchange Rate Policy ◽  
Price Stability ◽  
Output Stability ◽  
Long Run ◽  
The Exchange Rate ◽  
The Impact

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.

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