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- W1608356441 abstract "The effects of a terms of trade deterioration on the current account are studied when the representative agent has Marshallian preferences, with which the rate of time preference is a decreasing function of savings. A terms of trade deterioration reduces the permanent income of the representative agent. With Marshallian preferences, savings fall and the country runs a current account deficit. The numerical evaluations of the model suggest that with standard functional forms and reasonable parameter values the Harberger-Laursen-Metzler effect is recovered in an infinite horizon model with an endogenous rate of time preference." @default.
- W1608356441 created "2016-06-24" @default.
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- W1608356441 date "2008-03-06" @default.
- W1608356441 modified "2023-09-23" @default.
- W1608356441 title "The Harberger-Laursen-Metzler effect with with Marshallian preferences" @default.
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