OIL DEPENDENCE, INTERNATIONAL BORROWINGS, AND ECONOMIC INSTABILITY IN A SMALL OPEN ECONOMY

Autor:	Ching-chong Lai, Kuan-Jen Chen, Chi-Ting Chin
Rok vydání:	2016
Předmět:	Domestic production Economics and Econometrics 0502 economics and business 05 social sciences Small open economy Economics Business cycle Relative magnitude International economics 050207 economics Capital account Economic stability 050205 econometrics
Zdroj:	Macroeconomic Dynamics. 21:889-917
ISSN:	1469-8056 1365-1005
DOI:	10.1017/s1365100515000760
Popis:	The existing literature dealing with mutual interactions between the extent of oil dependence and the possibility of belief-driven fluctuations unanimously ignores international loans. This simplified assumption disregards the fact that the relative magnitude of the financial account and the trade account exhibits an increasing trend. Faced with this deficiency in the literature, this paper develops a real business cycle model featuring oil dependence in domestic production and international loans, and examines whether both the presence of international borrowings and the dependence on imported energy will govern the emergence of belief-driven fluctuations.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f11e89e0f0cabe4e47b73ca62bf3a546 https://doi.org/10.1017/s1365100515000760 Zobrazit plný text záznamu