EconPapers    
Economics at your fingertips  
 

Contagious Policies: An Analysis of Spatial Interactions Among Countries’ Capital Account Policies

Andreas Steiner ()

No 80, IEER Working Papers from Institute of Empirical Economic Research, Osnabrueck University

Abstract: Countries’ capital account policies might be contagious in the sense that domestic policies are driven by other countries’ policies. A model of strategic interactions is developed to show that countries’ best response to policy changes elsewhere consists in imitating this policy. Using a spatial econometric model, the hypothesis of policy interactions is tested in a large panel data set. The evidence shows that capital account policies are contemporaneously correlated across countries. Concerning fundamentals, the move to a fixed exchange rate regime and an increase in real world interest rates are correlated with the imposition of capital account restrictions.

Keywords: Capital Controls; Strategic Interaction; Panel Data Analysis (search for similar items in EconPapers)
JEL-codes: C23 F21 F3 F42 (search for similar items in EconPapers)
Pages: 31
Date: 2010-01-29
New Economics Papers: this item is included in nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://web.fb9.uni-osnabrueck.de/repec/iee/wpaper/12906267_WP_80.pdf (application/pdf)

Related works:
Journal Article: CONTAGIOUS POLICIES: AN ANALYSIS OF SPATIAL INTERACTIONS AMONG COUNTRIES' CAPITAL ACCOUNT POLICIES (2010) Downloads
Working Paper: Contagious Policies: An Analysis of Spatial Interactions Among Countries' Capital Account Policies (2010) 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:iee:wpaper:wp0080

Access Statistics for this paper

More papers in IEER Working Papers from Institute of Empirical Economic Research, Osnabrueck University Rolandstrasse 8, 49069 Osnabrueck. Contact information at EDIRC.
Bibliographic data for series maintained by Karin Wessler-Rensmann ().

 
Page updated 2020-09-19
Handle: RePEc:iee:wpaper:wp0080