Robustness of Macroeconomic Indicators of Capital Mobility

Author/Editor:

Enrique G. Mendoza

Publication Date:

December 1, 1992

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 92/111

English

Publication Date:

December 1, 1992

ISBN/ISSN:

9781451853391/1018-5941

Stock No:

WPIEA1111992

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

40

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