A model of adjustment and growth: An empirical analysis

Carmen Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: the simplicity that makes a model more tractable from an operational standpoint may have several drawbacks as a result of the necessarily restrictive assumptions it employs. This paper assesses the empirically the trade-off between its simplifying assumptions and its ability to fit reality. This trade-off can be assessed by applying the model to a variety of countries. For each country, the following questions are asked: (1) Are the key parameters of the model stable? (2) How sensitive are the policy multipliers to these parameter estimates-that is, how robust are the policy implications? and (3) Are some target variables more vulnerable to forecast errors than others? This paper examines these three questions for a diverse sample of seven capital importing developing countries and attempts to reach some conclusions about the usefulness of the model to help in designing policy.

Keywords: IMF; program; money; demand; growth; balance; of; payments (search for similar items in EconPapers)
JEL-codes: E2 E4 F2 (search for similar items in EconPapers)
Date: 1991
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13233/1/MPRA_paper_13233.pdf original version (application/pdf)

Related works:
Journal Article: A Model of Adjustment and Growth: An Empirical Analysis (1990)
Working Paper: “A Model of Adjustment and Growth (1990)
Working Paper: A model of adjustment and growth: An empirical analysis (1989)
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:pra:mprapa:13233

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().