Technology capital and the U.S. current account (appendices)

Ellen R. McGrattan and Edward C. Prescott

No 407, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: Appendix A provides details for the computation of our model's equilibrium paths, the construction of model national and international accounts, and the sensitivity of our main findings to alternative parameterizations of the model. We demonstrate that the main finding of our paper - namely, that the mismeasurement of capital accounts for roughly 60 percent of the gap in FDI returns - is robust to alternative choices of income shares, depreciation rates, and tax rates, assuming the same procedure is followed in setting exogenous parameters governing the model's current account. Appendix B demonstrates that adding technology capital and locations to an otherwise standard two-country general equilibrium model has a large impact on the predicted behavior of labor productivity and net exports.

Keywords: International finance; Technology - Economic aspects (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.minneapolisfed.org/research/SR/SR407.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fip:fedmsr:407

Ordering information: This working paper can be ordered from
http://www.minneapolisfed.org/pubs/

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis
Contact information at EDIRC.
Series data maintained by Diane Rosenberger ().