An International Economy with Country-Specific Money and Productivity Growth Processes

Nicholas Ricketts and Thomas McCurdy

Canadian Journal of Economics, 1995, vol. 28, issue s1, 141-162

Abstract: This paper analyses a stochastic international growth model with money and country-specific forcing processes to productivity and money growth rates. Monies are required, owing to cash-in-advance constraints for consumption goods, but the liquidity constraints need not be binding for all periods. An individual can trade claims on future currency units for both countries through government bond markets. Each country specializes in the production of one of the goods, but individual agents can invest, subject to installation costs, in any available technology. The forcing processes are calibrated to a sample of U.S. and Canadian data. An equilibrium growth solution is computed numerically using the Marcet method of parameterized expectations. The interdependence implied by the model is illustrated by a series of impulse responses. Particular attention is focused on the asymmetry of the forcing processes across countries and the interaction between the real and the nominal components of the model.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.jstor.org/stable/136175 (text/html)
only available to JSTOR subscribers

Related works:
Working Paper: An International Economy with Country-Specific Money and Productivity Growth Processes (1991)
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:cje:issued:v:28:y:1995:i:s1:p:141-162

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().