Relative price movements in dynamic general equilibrium models of international trade

David Backus, Patrick Kehoe and Finn Kydland

No 9213, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: We examine the behavior of international relative prices from the perspective of dynamic general equilibrium theory, with particular emphasis on the variability of the terms of trade and the relation between the terms of trade and net exports. We highlight aspects of the theory that are critical in determining these properties, contrast our perspective with those associated with the Marshall-Lerner condition and the Harberger-Laursen-Metzler effect, and point out features of the data that have proved difficult to explain within existing dynamic general equilibrium models.

Keywords: International; trade (search for similar items in EconPapers)
Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://fraser.stlouisfed.org/scribd/?item_id=4945 ... 2-13.pdf#scribd-open Full text (application/pdf)

Related works:
Working Paper: Relative Price Movements in Dynamic General Equilibrium Models of International Trade (1992)
Working Paper: Relative Price Movements in Dynamic General Equilibrium Models of International Trade (1992)
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:fip:fedcwp:9213

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().