Aid Volatility and Real Business Cycles in a Developing Open Economy.
This article analyzes the impact of the unpredictability of foreign aid on macroeconomic fluctuations in the recipient country. I build a small open-economy business cycle model that accounts for foreign aid shocks, with no preference shocks. The model is calibrated to reflect the structural empiric...
| Publicado en: | Southern Economic Journal Vol. 83; no. 3; pp. 756 - 774 |
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| Formato: | Artículo |
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Wiley-Blackwell
Jan2017
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=120999908&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 120999908 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jan2017 vid: 83 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 120999908 10.1002/soej.12178 ppf: 756 ppct: 18 formats: fmt: – @attributes: type: T – @attributes: type: P size: 481KB tig: atl: Aid Volatility and Real Business Cycles in a Developing Open Economy. aug: au: Houndonougbo, Ahiteme N. affil: Department of Business, Rollins College, Winter Park, FL 32789, USA su: Macroeconomics Business cycles International economic assistance Free trade Market volatility sug: subj: Macroeconomics Business cycles International economic assistance Administration of General Economic Programs International Affairs International assistance Free trade Market volatility keyword: E32 F35 F41 O19 E32 F35 F41 O19 ab: This article analyzes the impact of the unpredictability of foreign aid on macroeconomic fluctuations in the recipient country. I build a small open-economy business cycle model that accounts for foreign aid shocks, with no preference shocks. The model is calibrated to reflect the structural empirical regularities of Cote d'Ivoire, a typical aid-dependent developing country. The parameters of the exogenous shocks are estimated using Bayesian methods and time series data for Cote d'Ivoire. The model produces business cycle patterns that are consistent with the data and key stylized facts. Specifically, the excess volatility of consumption with respect to output is successfully replicated. The results suggest that the unpredictability of foreign aid contributes to explain the volatility of business cycles in the recipient economy and has negative welfare effects. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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