Obstfeld and Rogoff’s International Macro Puzzles: A Quantitative Assessment∗
نویسندگان
چکیده
Obstfeld and Rogoff (2001) propose that trade frictions lie behind key puzzles in international macroeconomics. We take a dynamic multicountry model of international trade, production, and investment to data from 19 countries to assess this proposition quantitatively. Using the framework developed in Eaton, Kortum, Neiman, and Romalis (2016), we revisit the puzzles in a counterfactual world without trade frictions in manufactures. Removing these trade frictions goes a long way toward resolving a number of the puzzles: The dependence of domestic investment on domestic saving falls by half or disappears entirely, mitigating the Feldstein-Horioka (1980) puzzle. Changes in nominal GDPs in U.S. dollars become less variable across countries and line up with changes in real GDPs as much as with real exchange rates, mitigating the exchange rate disconnect puzzle. Less dramatically, changes in consumption become more correlated across countries, mitigating the consumption correlations puzzle and changes in real exchange rates become less variable across countries, mitigating the relative purchasing power parity puzzle. JEL-Codes: E3, F4, F17.
منابع مشابه
Do trade costs in goods market lead to home bias in equities?
Two of the main puzzles in international economics are the consumption and the portfolio home biases. They are empirically related: countries that are more open to trade also have more internationally diversified portfolios. In a two-country stochastic equilibrium model, I prove that introducing trade costs in goods market alone, as suggested by Obstfeld and Rogoff [2000], is not sufficient to ...
متن کاملA New Semi-Quantitative Approach to Open-Pit Mine Sustainability Assessment
Sustainability assessment has received numerous attentions in the mining industry. Mining sustainability includes the environmental, economic, and social dimensions, and a sustainable development is achieved when all these dimensions improve in a balanced manner. Therefore, to measure the sustainability score of a mine, we require an approach that evaluates all these three dimensions of mining ...
متن کاملEvaluation Effect of Macro and Micro Nutritional Elements on Quantitative and Qualitative Characteristics of Oat Crop (Avena sativa L.)
In order to assessment the effect of micro and macro nutrients on agro physiological traits of oat crop a research was conducted via split plot experiment based on randomized complete block design with three replications at Agricultural Research Station, Faculty of Agriculture, Shahid Chamran University of Ahvaz, along 2013-2014. The main factor included different complex of macro and micro nut...
متن کاملLearning by Discovering Macros in Puzzle Solving
This paper proposes a model of learning by discovery. The model consists of a program which discovers macro operators while conducting a best first heuristic search in the domain of puzzles. This work extends some recent work on permutation puzzles (Korf, 1982) and operator-decomposable puzzles (Korf, 1983), and is related to the earlier work on MACROPS (Fikes, Hart, and Nilsson, 1972). This wo...
متن کاملMulti-criteria Risk Assessment of a Construction Project
The paper presents risk assessment of construction objects for the project of commercial center construction. The risk assessment is based on the multi-criteria decision making methods with fuzzy information. The risk evaluation criteria are selected taking into consideration the macro, mezzo and micro levels of a construction project. Ranking of objects and determination of their optimality ar...
متن کامل