Technological dependence and budgetary policy in an uncertain horizon model of small open economy

Meixing Dai ()

MPRA Paper from University Library of Munich, Germany

Abstract: It is set up in this paper a formulation which endogeneizes the choice of investment inputs in open economy context where a small country may depend on foreign technology. Then it is integrated into a macroeconomic model of small specialized country with Blanchard-Yaari type uncertain horizon consumers. Contrary to some models with ad hoc formulation, it is found in this model that generally the budgetary policy has eects on the short- and long-run capital stock. The corresponding intertemporal spill-over effects of the budgetary policy, through the supply side of economy on external position, aggregate consumption, real exchange rate and capital evaluation ratio, are also examined.

Keywords: Technological dependence; choice of investment inputs; capital stock; capital evaluation ratio; real exchange rate and external position (search for similar items in EconPapers)
JEL-codes: F34 F41 (search for similar items in EconPapers)
Date: 1992-10
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https://mpra.ub.uni-muenchen.de/14348/1/MPRA_paper_14348.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14003

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