Trade Reforms of Uncertain Duration and Real Uncertainty : A First Approximation /

This paper examines trade reforms of uncertain duration undertaken in economies subject to real foreign and domestic shocks. These reforms induce consumption and import booms regardless of whether they succeed or fail and of the degree of intertemporal elasticity of substitution. If tariff revenue i...

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Hlavní autor: Calvo, Guillermo
Další autoři: Mendoza, Enrique
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1994.
Edice:IMF Working Papers; Working Paper ; No. 1994/045
On-line přístup:Full text available on IMF
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100 1 |a Calvo, Guillermo. 
245 1 0 |a Trade Reforms of Uncertain Duration and Real Uncertainty :   |b A First Approximation /  |c Guillermo Calvo, Enrique Mendoza. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1994. 
300 |a 1 online resource (42 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper examines trade reforms of uncertain duration undertaken in economies subject to real foreign and domestic shocks. These reforms induce consumption and import booms regardless of whether they succeed or fail and of the degree of intertemporal elasticity of substitution. If tariff revenue is rebated, a recession follows the boom, but without rebates a boom or a recession may follow depending on the outcome of the reform. Consumption fluctuations reflect imperfect credibility and real shocks, and the credibility component depends on the mean and risk of real asset returns. Thus, observed booms are a noisy signal of imperfect credibility. Quantitatively, lack of credibility produces sizable consumption cycles, but generally smaller than those induced by real disturbances. 
538 |a Mode of access: Internet 
700 1 |a Mendoza, Enrique. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1994/045 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1994/045/001.1994.issue-045-en.xml  |z IMF e-Library