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The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks. / Cardi, Olivier.
In: Review of International Economics, Vol. 15, No. 4, 09.2007, p. 782-802.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Cardi, O 2007, 'The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks', Review of International Economics, vol. 15, no. 4, pp. 782-802. https://doi.org/10.1111/j.1467-9396.2007.00697.x

APA

Cardi, O. (2007). The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks. Review of International Economics, 15(4), 782-802. https://doi.org/10.1111/j.1467-9396.2007.00697.x

Vancouver

Cardi O. The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks. Review of International Economics. 2007 Sept;15(4):782-802. Epub 2007 Aug 24. doi: 10.1111/j.1467-9396.2007.00697.x

Author

Cardi, Olivier. / The Zero-Root Property : Permanent vs. Transitory Terms of Trade Shocks. In: Review of International Economics. 2007 ; Vol. 15, No. 4. pp. 782-802.

Bibtex

@article{ffc6a0bfc4fd46f3b3567cd9b59353db,
title = "The Zero-Root Property: Permanent vs. Transitory Terms of Trade Shocks",
abstract = "In this contribution, we show that the persistence and the time of occurrence of a terms‐of‐trade shock matter in determining steady‐state changes: (i) a strong persistent (temporary) terms‐of‐trade worsening induces a long‐run decline in the real expenditure greater than after a permanent disturbance; (ii) an adverse permanent shift in the terms of trade raises the real expenditure in the long run if the shock is expected to occur in the distant future. Finally, according to whether a temporary terms‐of‐trade worsening is anticipated or not, the current account displays a monotonic or a nonmonotonic adjustment.",
author = "Olivier Cardi",
year = "2007",
month = sep,
doi = "10.1111/j.1467-9396.2007.00697.x",
language = "English",
volume = "15",
pages = "782--802",
journal = "Review of International Economics",
issn = "0965-7576",
publisher = "Wiley-Blackwell",
number = "4",

}

RIS

TY - JOUR

T1 - The Zero-Root Property

T2 - Permanent vs. Transitory Terms of Trade Shocks

AU - Cardi, Olivier

PY - 2007/9

Y1 - 2007/9

N2 - In this contribution, we show that the persistence and the time of occurrence of a terms‐of‐trade shock matter in determining steady‐state changes: (i) a strong persistent (temporary) terms‐of‐trade worsening induces a long‐run decline in the real expenditure greater than after a permanent disturbance; (ii) an adverse permanent shift in the terms of trade raises the real expenditure in the long run if the shock is expected to occur in the distant future. Finally, according to whether a temporary terms‐of‐trade worsening is anticipated or not, the current account displays a monotonic or a nonmonotonic adjustment.

AB - In this contribution, we show that the persistence and the time of occurrence of a terms‐of‐trade shock matter in determining steady‐state changes: (i) a strong persistent (temporary) terms‐of‐trade worsening induces a long‐run decline in the real expenditure greater than after a permanent disturbance; (ii) an adverse permanent shift in the terms of trade raises the real expenditure in the long run if the shock is expected to occur in the distant future. Finally, according to whether a temporary terms‐of‐trade worsening is anticipated or not, the current account displays a monotonic or a nonmonotonic adjustment.

U2 - 10.1111/j.1467-9396.2007.00697.x

DO - 10.1111/j.1467-9396.2007.00697.x

M3 - Journal article

VL - 15

SP - 782

EP - 802

JO - Review of International Economics

JF - Review of International Economics

SN - 0965-7576

IS - 4

ER -