Dynamic analysis in the Viner model of mercantilism

Heng-Fu Zou ()

No 100, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: This paper models the central theme of mercantilism in Jacob Viner's interpretation-power vs plenty-in a framework of modern theory of international finance. It is shown that, in the Viner model of mercantilism, a nation with strong mercantilist sentiment ends up with large foreign asset accumulation and high consumption in the long run; an import tariff leads to more foreign asset holding and more total consumption; furthermore, in the Viner model, the Harberger-Laursen-Metzler effect exists unambiguously: a permanent terms-of-trade deterioration causes a current account deficit in the short run.

Keywords: spirit of capitalism; social status; money; growth (search for similar items in EconPapers)
JEL-codes: F1 F3 (search for similar items in EconPapers)
Pages: 15 pages
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in Journal of International Money and Finance, Volume 16, Issue 4, August 1997, Pages 637-651

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Journal Article: Dynamic analysis in the Viner model of mercantilism (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:100

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