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Argentina's recovery and \"excess\" capital shallowing of the 1990s

Author

Listed:
  • Finn E. Kydland
  • Carlos E. Zarazaga

Abstract

The paper examines Argentina?s economic expansion in the 1990s through the lens of a parsimonious neoclassical growth model. The main finding is that investment remained considerably weaker than what the model would have predicted. The resulting excessive ?capital shallowing? could be identified as a weakness of the rapid economic growth of the 1990s that may have played a role in Argentina?s ultimate inability to escape the crisis that started to unfold towards the end of that decade.

Suggested Citation

  • Finn E. Kydland & Carlos E. Zarazaga, 2002. "Argentina's recovery and \"excess\" capital shallowing of the 1990s," Working Papers 0204, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:0204
    Note: Published as: Kydland, Finn E. and Carlos E.J.M. Zarazaga (2002), "Argentina's Recovery and "Excess" Capital Shallowing of the 1990s," Estudios de Economia 29 (1): 35-45.
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    References listed on IDEAS

    as
    1. Alvarez, Fernando & Jermann, Urban J, 2001. "Quantitative Asset Pricing Implications of Endogenous Solvency Constraints," The Review of Financial Studies, Society for Financial Studies, vol. 14(4), pages 1117-1151.
    2. Patrick J. Kehoe & Fabrizio Perri, 2002. "International Business Cycles with Endogenous Incomplete Markets," Econometrica, Econometric Society, vol. 70(3), pages 907-928, May.
    3. Timothy J. Kehoe & Edward C. Prescott, 2002. "Great Depressions of the Twentieth Century," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 1-18, January.
    4. Finn E. Kydland & Carlos E. J. M. Zarazaga, 2002. "Argentina's Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 152-165, January.
    5. Hansen, Gary D., 1997. "Technical progress and aggregate fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 21(6), pages 1005-1023, June.
    6. Finn E. Kydland & Carlos E. J. M. Zarazaga, 2002. "Argentina's Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 152-165, January.
    7. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    8. Timothy J. Kehoe & Edward C. Prescott, 2007. "Great depressions of the twentieth century," Monograph, Federal Reserve Bank of Minneapolis, number 2007gdott.
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    Citations

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    Cited by:

    1. Gita Gopinath & Brent Neiman, 2014. "Trade Adjustment and Productivity in Large Crises," American Economic Review, American Economic Association, vol. 104(3), pages 793-831, March.
    2. Alan M. Taylor, 2018. "The Argentina Paradox: microexplanations and macropuzzles," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-17, December.
    3. Ariel Coremberg, 2008. "The Measurement of TFP in Argentina, 1990-2004: A Case of the Tyranny of Numbers, Economic Cycles and Methodology," International Productivity Monitor, Centre for the Study of Living Standards, vol. 17, pages 52-74, Fall.
    4. Servén, Luis & Terra, María Cristina, 2003. "Comments," LSE Research Online Documents on Economics 123385, London School of Economics and Political Science, LSE Library.
    5. repec:hal:spmain:info:hdl:2441/6827 is not listed on IDEAS
    6. Jérôme Sgard, 2004. "Ce qu’on en dit après : le « currency board » argentin et sa fin tragique," Post-Print hal-01019663, HAL.
    7. repec:spo:wpmain:info:hdl:2441/6827 is not listed on IDEAS

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    More about this item

    Keywords

    Argentina; depression; growth models;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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