Citation
Jc. Sadka et Km. Yi, CONSUMER DURABLES, PERMANENT TERMS OF TRADE SHOCKS, AND THE RECENT USTRADE DEFICITS, Journal of international money and finance, 15(5), 1996, pp. 797-811
Citations number
24
Categorie Soggetti
Business Finance
Journal title
ISSN journal
02615606
Volume
15
Issue
5
Year of publication
1996
Pages
797 - 811
Database
ISI
SICI code
0261-5606(1996)15:5<797:CDPTOT>2.0.ZU;2-A
Abstract
This paper employs an open economy real business cycle model to sugges
t that part of the 1980s US trade deficits may have been driven by per
manent declines in consumer durable import prices. We also show that m
ost of the resulting decline in the trade balance is due to wealth eff
ects, not substitution effects. Copyright (C) 1996 Elsevier Science Lt
d