Country Portfolio Dynamics
December 1, 2007
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Summary
This paper presents a general approximation method for characterizing time-varying equilibrium portfolios in a two-country dynamic general equilibrium model. the method can be easily adapted to most dynamic general equilibrium models, it applies to environments in which markets are complete or incomplete, and it can be used for models of any dimension. Moreover, the approximation provides simple, easily interpretable closed form solutions for the dynamics of equilibrium portfolios.
Subject: Bonds, Consumption, Currencies, General equilibrium models
Keywords: mover accent, WP
Pages:
27
Volume:
2007
DOI:
Issue:
283
Series:
Working Paper No. 2007/283
Stock No:
WPIEA2007283
ISBN:
9781451868463
ISSN:
1018-5941
