Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?
Patrick Kehoe () and
American Economic Review, 1994, vol. 84, issue 1, pages 84-103
The authors provide a theoretical interpretation of two features of international data: the countercyclical movements in net exports and the tendency for the trade balance to be negatively correlated with current and future movements in terms of trade but positively correlated with past movements. They document the same properties in a two-country stochastic growth model in which trade fluctuations reflect, in large part, the dynamics of capital formation. The authors find that their general-equilibrium perspective is essential: the relation between the trade balance and the terms of trade depends critically on the source of fluctuations. Copyright 1994 by American Economic Association.
References: Add references at CitEc
Citations View citations in EconPapers (424) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0002-8282%2819940 ... O%3B2-S&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Software Item: DOS executable for "Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?" (1992)
Software Item: Web interface for "Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?" (1992)
Working Paper: Dynamics of the trade balance and the terms of trade: the S-curve (1992)
Working Paper: Dynamics of the Trade Balance and the Terms of Trade: The S-Curve (1992)
Software Item: GAUSS code for Backus-Kehoe-Kydland
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:aea:aecrev:v:84:y:1994:i:1:p:84-103
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().