EconPapers    
Economics at your fingertips  
 

Imports, Status Preference, and Foreign Borrowing

Walter Fisher

Review of Development Economics, 2008, vol. 12, issue 1, 1-20

Abstract: This paper considers the implications of consumption and borrowing externalities in a small open economy framework. The former reflect the assumption that status conscious agents care about the relative consumption of imported goods, while the latter arise because agents do not take into account the effects of their borrowing decisions on the interest rate on debt. We analyze in the paper the impact of an increase in the degree of status preference on the saddlepath adjustment of the decentralized economy. In addition, the contrasting steady‐state and dynamic properties of the social planner’s economy are derived, along with the corresponding optimal tax and subsidy policies.

Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1467-9361.2007.00380.x

Related works:
Working Paper: Imports, Status Preference, and Foreign Borrowing (2004) Downloads
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: https://EconPapers.repec.org/RePEc:bla:rdevec:v:12:y:2008:i:1:p:1-20

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-06-01
Handle: RePEc:bla:rdevec:v:12:y:2008:i:1:p:1-20