Deregulation and the Current Account

Philipp Harms

No 02.07, Working Papers from Swiss National Bank, Study Center Gerzensee

Abstract: In this paper we use a dynamic general-equilibrium model to study how removing barriers to competition in the nontraded goods sector affects the current account, the real exchange rate, and the factor prices in a small open economy. We show that the expansion of the nontraded sector that results from a "deregulation shock" is associated with an accumulation of foreign assets unless production of nontraded goods is very capital-intensive. Moreover, while the real exchange rate decreases monotonically towards its new steady state, the real wage may temporarily overshoot its long-run level.

Pages: 24 pages
Date: 2002-12
New Economics Papers: this item is included in nep-com, nep-ifn and nep-ind
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.szgerzensee.ch/fileadmin/Dateien_Anwend ... g_papers/wp-0207.pdf Full text (application/pdf)
None

Related works:
Working Paper: Deregulation and the current account (2001)
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:szg:worpap:0207

Ordering information: This working paper can be ordered from
Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee

The price is Free.

Access Statistics for this paper

More papers in Working Papers from Swiss National Bank, Study Center Gerzensee Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee.
Bibliographic data for series maintained by library ().