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Imperfect Capital Mobility in an Open Economy Model of Capital Accumulation, Vladimir Klyuev

Abstract
This paper introduces a tractable capital market friction mechanism that allows a break of the parity between domestic and external interest rates and generates a gradual evolution of capital stock and other macroeconomic variables-in contrast to the instantaneous convergence found in models with interest rate parity. The friction, derived from explicit microfoundations, is such that the cost of new loans is an increasing function of net borrowing
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. FRICTION MECHANISM""; ""III. MODEL OF CAPITAL ACCUMULATION WITH IMPERFECT CAPITAL MOBILITY""; ""A. Firms and Household Sector""; ""B. Short-Sighted Friction""; ""C. Far-Sighted Friction""; ""IV. CONCLUSION""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (19 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452734149

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