TY - JOUR
T1 - A neoclassical analysis of the asian crisis
T2 - Business cycle accounting for a small open economy
AU - Otsu, Keisuke
N1 - Funding Information:
∗This paper is based on a chapter of my dissertation at UCLA. I am truly grateful to my advisor Lee Ohanian for his suppport and encouragement. I would also like to thank the editor, two anonymous referees, Bob Amano, Toni Braun, Harold Cole, Hiroshi Fujiki, Ippei Fujiwara, Gary Hansen, Selo Imrohoroglu, Masaru Inaba, Shin-Ichi Nishiyama, Tsunao Okumura, Etsuro Shioji, the staff of the Institute for Monetary and Economic Studies at the Bank of Japan, and participants of the 9th Macro Conference at Keio University, Bank of Canada Brown Bag Seminar, GRIPS International Conference, 2008 Midwest Macro Meeting, and 2008 Far-Eastern Meeting of the Econometric Society for their helpful comments. This work was supported by KAKENHI (20830088).
PY - 2010
Y1 - 2010
N2 - This paper applies the business cycle accounting method la Chari, Kehoe and McGrattan (2007) to a standard neoclassical small open economy model and assesses the economic crises in Hong Kong, Korea and Thailand. Quantitative results show that distortions in production efficiency are important in all countries in accounting for the sudden output collapses while distortions in the investment and international financial markets are not. If domestic or international financial frictions are the main source of the Asian crisis, they must have operated through total factor productivity (TFP).
AB - This paper applies the business cycle accounting method la Chari, Kehoe and McGrattan (2007) to a standard neoclassical small open economy model and assesses the economic crises in Hong Kong, Korea and Thailand. Quantitative results show that distortions in production efficiency are important in all countries in accounting for the sudden output collapses while distortions in the investment and international financial markets are not. If domestic or international financial frictions are the main source of the Asian crisis, they must have operated through total factor productivity (TFP).
KW - Asian crisis
KW - TFP
KW - business cycle accounting
KW - small open economy
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U2 - 10.2202/1935-1690.1980
DO - 10.2202/1935-1690.1980
M3 - Article
AN - SCOPUS:77955255901
SN - 1935-1690
VL - 10
JO - B.E. Journal of Macroeconomics
JF - B.E. Journal of Macroeconomics
IS - 1
M1 - 17
ER -