{
  "title": "Robustness of Macroeconomic Indicators of Capital Mobility",
  "publication": "IMF Working Papers, December 1, 1992",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/index.md",
  "summary": "The performance of macroeconomic indicators of capital mobility is examined in the context of an intertemporal equilibrium model of a small open economy.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Author: Enrique G. Mendoza\n- Date: December 1, 1992\n- Core question: How well do common macroeconomic indicators identify capital mobility within an intertemporal equilibrium model of a small open economy?"
    },
    {
      "heading": "Methodology",
      "content": "- Model framework: Intertemporal equilibrium model of a small open economy.\n- Solution approach: Recursive numerical solution methods.\n- Indicators computed:\n  - Measures of consumption smoothing.\n  - Savings–investment correlation.\n  - Variability of investment.\n  - Output-correlation of investment.\n- Environment: Model characterized in the presence of income disturbances."
    },
    {
      "heading": "Key findings",
      "content": "- None of the computed statistics is a reliable indicator of capital mobility on its own.\n- The reliability of these indicators depends critically on information regarding:\n  - Differences in preferences.\n  - Differences in technology.\n  - The nature of stochastic shocks."
    },
    {
      "heading": "Implications",
      "content": "- Empirical assessment of capital mobility requires accounting for cross-country or cross-context heterogeneity in preferences and technology, and careful modeling of shock processes.\n- Policy or inference based solely on consumption smoothing, savings–investment correlation, or investment variability/output-correlation may be misleading without additional structural information.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/bundle-manifest.json)",
    "Authors: Enrique G. Mendoza",
    "Published: December 1, 1992",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451853391.001",
    "Author: Enrique G. Mendoza",
    "Date: December 1, 1992",
    "Core question: How well do common macroeconomic indicators identify capital mobility within an intertemporal equilibrium model of a small open economy?",
    "Model framework: Intertemporal equilibrium model of a small open economy.",
    "Solution approach: Recursive numerical solution methods.",
    "Indicators computed:",
    "Environment: Model characterized in the presence of income disturbances.",
    "None of the computed statistics is a reliable indicator of capital mobility on its own.",
    "The reliability of these indicators depends critically on information regarding:",
    "Empirical assessment of capital mobility requires accounting for cross-country or cross-context heterogeneity in preferences and technology, and careful modeling of shock processes.",
    "Policy or inference based solely on consumption smoothing, savings–investment correlation, or investment variability/output-correlation may be misleading without additional structural information."
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/robustness-of-macroeconomic-indicators-of-capital-mobility-861/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T07:27:34.729Z"
}