Essays in macroeconomic analysis of small open economies : application of elasticities and simple equilibrium modeling in Bolivia / Gover Barja, Javier Monterrey Arce, Sergio Villarroel Böhrt.
"The first part shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be com...
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| Main Author: | |
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| Other Authors: | , |
| Format: | Book |
| Language: | English |
| Published: |
Saarbrücken, Germany :
VDM Verlag Dr. Müller,
2009.
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| Subjects: |
| Summary: | "The first part shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be computed and used for calculation of the elasticity of substitution in consumption using a CES function and time series econometrics. The second part shows how an economy can be divided into tradables and non-tradables but with three goods: exports, imports and domestic production. It is then possible to compute the price ratio of export to domestic good in production and the price ratio of import and domestic good in consumption. These ratios are used to compute elasticities of substitution in production and consumption with time series econometrics, which are used as key parameters in the known simple 1-2-3 CGE model to study the impacts of external shocks in a developing economy. These shocks and its macro impacts are transmitted to households, simulating micro-changes on income, expenditure and poverty indicators for two distant periods."--Back cover. |
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| Physical Description: | 124 pages : illustrations ; 23 cm |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 3639215702 9783639215700 |