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The Dependent-Economy Model with Both Traded and Nontraded Capital Goods Author info | Abstract | Publisher info | Download info | Related research | Statistics Brock, Philip L
Turnovsky, Stephen J
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Dynamic versions of the dependent-economy model have been criticized for arbitrarily assuming that capital is either tradable or nontradable, and for choosing either the traded or nontraded sector to be capital intensive. Our model incorporates both types of capital and shows that the relative sectoral intensity of nontraded capital determines the dynamic adjustment of the relative price of nontradables. When the traded sector is intensive in nontraded capital, the saddlepath is flat. When the nontraded sector is intensive in nontraded capital, the saddlepath is negatively sloped. The relative sectoral intensity of traded capital primarily affects current-account dynamics. Copyright 1994 by Blackwell Publishing Ltd.
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Article provided by Blackwell Publishing in its journal Review of International Economics .
Volume (Year): 2 (1994)
Issue (Month): 3 (October)
Pages: 306-25
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Handle: RePEc:bla:reviec:v:2:y:1994:i:3:p:306-25Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Turnovsky Stephen J. & Sen Partha, 1995.
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Engel, C., 1996.
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Arellano, Cristina & Bulír, Ales & Lane, Timothy & Lipschitz, Leslie, 2009.
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