International trade transmission channel of a local crisis: a simple model

Diego Cerdeiro and Ariel Wirkierman

Económica, 2008, vol. LIV, issue 1-2, 87-119

Abstract: We propose a linear general interdependence model of the world economy, and use United Nations Statistics Division data to estimate its parameters. This allows us to assess the propagation through the channel of international trade of an exogenous shock to one country's autonomous expenditures, thereby constructing a "vulnerability ranking" for the countries in the sample to an exogenous shock to any of them. The response of the system to a negative shock to the United States autonomous outlays is carried out as an example. Though subject to multiple caveats, these comparative statics results might be useful for policy analysis.

Keywords: World trade multiplier; Linear general interdependence models; Input-Output analysis; Decoupling (search for similar items in EconPapers)
JEL-codes: F10 F15 F41 F42 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.depeco.econo.unlp.edu.ar/economica/ing/ ... p?param=30&param2=83 (application/pdf)

Related works:
Journal Article: International trade transmission channel of a local crisis: a simple model (2008)
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:lap:journl:560

Access Statistics for this article

More articles in Económica from Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata Contact information at EDIRC.
Bibliographic data for series maintained by Milagros Cejas ().