| Description |
1 online resource |
| Series |
IMF Working Papers |
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IMF Working Papers
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| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Looking at Mexican Data: 1988-2002; A. Real Exchange Rate and Relative Prices; 1. Evolution of the Real Exchange Rate in Mexico, 1988-2002; 1. Real Exchange Rate and the Domestic Relative Price of Tradables; 2. Real Exchange Rate and the Domestic Relative Price of Tradable Goods; 2. Terms of Trade and the Residual; 3. Terms of Trade and the Residual; 3. An Alternative Decomposition of the RER; B. More on the Relative Price of Tradable over Non-Tradable Goods |
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4. Decomposing the Evolution of the Relative Price of Tradable over Non-Tradable Goods1. Decomposition of the Relative Price of Tradable over Non-Tradable Goods; C. Sectoral Growth Accounting; 5. Evolution of Total Factor Productivity in Tradable and Non-Tradable Sectors; 6. Reallocation of Labor and Capital Between Tradable and Non-Tradable Sectors; 2. Sectoral Growth Accounting; D. The Mexican Case in Context; 3. Real Appreciation and Labor Reallocation in Selected Countries; 7. Interest Rate for Foreign Debt in Selected Countries (Including Country Pre-mium) |
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8. Relative Price of Tradables and Labor Reallocation in Mexico, 1980-2002III. A Two-Sector Model of a Small Open Economy; A. Production; B. Consumption and Savings; C. Equilibrium; IV. Accounting for the Mexican Appreciation; A. Calibrating the Model; 4. Calibration of the Model; B. Equilibrium Path and the Relative Price of Tradable Goods; 9. Other Demand Shocks for the Mexican Economy; 10. Equilibrium Transition for the Benchmark Economy; C. The 1994-95 Crisis and the Current Account; 11. Net Exports with Foreseen and Unforeseen Sudden Stops in 1995; V. Sources of the Mexican Appreciation |
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A. Sectoral TFP Shocks vs. Interest Rate Shocks12. Transition without Sectoral Productivity Shocks; 5. Accounting for the Mexican Appreciation; B. The Role of Adjustment Costs for Labor; 13. Transition without Adjustment Costs for Labor; C. Other Demand Shocks; 1. Migration Remittances; 2. Foreign Reserves Accumulation; 3. Government Expenditures; VI. Terms of Trade, Tariffs and the Mexican Appreciation; A. A Model with International Differentiation of Goods; B. Revisiting our Quantitative Results; 1. The Role of Terms of Trade |
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14. Equilibrium Transition for the Model with Terms of Trade Shocks6. Calibration of the Model with Terms of Trade Shocks; 7. Accounting Using the Model with International Goods Differentiation; 2. The Role of Import Tariffs Reduction; VII. Conclusions; References; Footnotes |
| Summary |
We account for the appreciation of the real exchange rate in Mexico between 1988 and 2002 using a two sector dynamic general equilibrium model of a small open economy with two driving forces: (i) differential productivity growth across sectors and (ii) a decline in the cost of borrowing in foreign markets. These two mechanisms account for 60 percent of the decline in the relative price of tradable goods and explain a large fraction of the reallocation of labor across sectors. We do not find a significant role for migration remittances, foreign reserves accumulation, government spending, terms of trade, or import tariffs |
| Notes |
English |
| SUBJECT |
Mexico. http://id.loc.gov/authorities/names/n81013960
|
| Subject |
Mexico
|
| Form |
Electronic book
|
| Author |
Urrutia, Carlos, Contributor
|
| ISBN |
1451981929 |
|
9781451981926 |
|
9781451982077 |
|
1451982070 |
|
1462301266 |
|
9781462301263 |
|
9786612845567 |
|
6612845562 |
|
