Cover IMF Working Papers
Robustness of Macroeconomic Indicators of Capital Mobility
Author: Mr. Enrique G. Mendoza
Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 111
Language:
English
Publication Date:
01 Dec 1992
DOI:
https://doi.org/10.5089/9781451853391.001
ISBN:
9781451853391
ISSN:
1018-5941
Pages:
40
Keywords:
WP; capital mobility; standard deviation; open economy; balance of trade; savings-investment correlation; immobile capital; savings plan; consumption variability; foreign assets; investment variability; Consumption; Business cycles; Foreign assets; Trade balance
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The performance of macroeconomic indicators of capital mobility is examined in the context of an intertemporal equilibrium model of a small open economy. Recursive numerical solution methods are used to compute measures of consumption smoothing, savings-investment correlation, and the variability and output-correlation of investment that characterize the model in the presence of income disturbances. None of these statistics is a reliable indicator of capital mobility unless information regarding differences in preferences, technology, and the nature of stochastic shocks can be taken into account.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund