Essays in Macroeconomic Analysis of Small Open Economies: Application of Elasticities and Simple General Equilibrium Modeling in Bolivia

Sergio G. Villarroel-Böhrt, Gover Barja, Javier Monterrey

Research output: Book/ReportBookScientific

1 Downloads (Pure)

Abstract

The first part of the book shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be computed and used for calculation of the elasticity of substitution in consumption using a CES function and time series econometrics. The second part shows how an economy can be divided into tradables and non-tradables but with three goods: exports, imports and domestic production. It is then possible to compute the price ratio of export to domestic good in production and the price ratio of import and domestic good in consumption. These ratios are used to compute elasticities of substitution in production and consumption with time series econometrics, which are used as key parameters in the known simple 1-2-3 CGE model to study the impacts of external shocks in a developing economy. These shocks and its macro impacts are transmitted to households, simulating micro-changes on income, expenditure and poverty indicators for two distant periods.
Original languageEnglish
Place of PublicationGermany
PublisherVdm Verlag Dr. Mueller E.K.
Number of pages124
Volume1
EditionFirst
ISBN (Print)9783639215700
Publication statusPublished - 11 Dec 2009
Externally publishedYes

Fingerprint

Elasticity
General equilibrium modeling
Macroeconomics
Bolivia
Small open economy
Nontradables
Elasticity of substitution
Time series econometrics
Import
Economic sectors
Income
Household
Developing economies
Poverty measures
CGE model
External shocks
Expenditure
National accounts
Real exchange rate

Cite this

@book{edcbd885c2de4850831860576e7375aa,
title = "Essays in Macroeconomic Analysis of Small Open Economies: Application of Elasticities and Simple General Equilibrium Modeling in Bolivia",
abstract = "The first part of the book shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be computed and used for calculation of the elasticity of substitution in consumption using a CES function and time series econometrics. The second part shows how an economy can be divided into tradables and non-tradables but with three goods: exports, imports and domestic production. It is then possible to compute the price ratio of export to domestic good in production and the price ratio of import and domestic good in consumption. These ratios are used to compute elasticities of substitution in production and consumption with time series econometrics, which are used as key parameters in the known simple 1-2-3 CGE model to study the impacts of external shocks in a developing economy. These shocks and its macro impacts are transmitted to households, simulating micro-changes on income, expenditure and poverty indicators for two distant periods.",
author = "Villarroel-B{\"o}hrt, {Sergio G.} and Gover Barja and Javier Monterrey",
year = "2009",
month = "12",
day = "11",
language = "English",
isbn = "9783639215700",
volume = "1",
publisher = "Vdm Verlag Dr. Mueller E.K.",
edition = "First",

}

Essays in Macroeconomic Analysis of Small Open Economies : Application of Elasticities and Simple General Equilibrium Modeling in Bolivia . / Villarroel-Böhrt, Sergio G.; Barja, Gover; Monterrey, Javier.

First ed. Germany : Vdm Verlag Dr. Mueller E.K., 2009. 124 p.

Research output: Book/ReportBookScientific

TY - BOOK

T1 - Essays in Macroeconomic Analysis of Small Open Economies

T2 - Application of Elasticities and Simple General Equilibrium Modeling in Bolivia

AU - Villarroel-Böhrt, Sergio G.

AU - Barja, Gover

AU - Monterrey, Javier

PY - 2009/12/11

Y1 - 2009/12/11

N2 - The first part of the book shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be computed and used for calculation of the elasticity of substitution in consumption using a CES function and time series econometrics. The second part shows how an economy can be divided into tradables and non-tradables but with three goods: exports, imports and domestic production. It is then possible to compute the price ratio of export to domestic good in production and the price ratio of import and domestic good in consumption. These ratios are used to compute elasticities of substitution in production and consumption with time series econometrics, which are used as key parameters in the known simple 1-2-3 CGE model to study the impacts of external shocks in a developing economy. These shocks and its macro impacts are transmitted to households, simulating micro-changes on income, expenditure and poverty indicators for two distant periods.

AB - The first part of the book shows how economic sectors can be classified as tradables and non-tradables, how variables of national accounts can be divided into this two-sector economy. Based on this, precise consumption ratio and price ratio (real exchange rate) between tradable to non-tradables can be computed and used for calculation of the elasticity of substitution in consumption using a CES function and time series econometrics. The second part shows how an economy can be divided into tradables and non-tradables but with three goods: exports, imports and domestic production. It is then possible to compute the price ratio of export to domestic good in production and the price ratio of import and domestic good in consumption. These ratios are used to compute elasticities of substitution in production and consumption with time series econometrics, which are used as key parameters in the known simple 1-2-3 CGE model to study the impacts of external shocks in a developing economy. These shocks and its macro impacts are transmitted to households, simulating micro-changes on income, expenditure and poverty indicators for two distant periods.

M3 - Book

SN - 9783639215700

VL - 1

BT - Essays in Macroeconomic Analysis of Small Open Economies

PB - Vdm Verlag Dr. Mueller E.K.

CY - Germany

ER -