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- W3147483703 abstract "This paper evaluates whether an estimated, structural, small open economy model of the Canadian economy can account for the substantial influence of foreign-sourced disturbances identified in numerous reduced-form studies. The analysis shows that the benchmark model --- and a number of variants which include a range of market imperfections --- imply cross-equation restrictions that are too stringent when confronted with the data, yielding implausible parameter estimates. While appropriate choice of ad hoc disturbances can relax these cross-equation restrictions and therefore capture certain properties of the data --- for instance, the volatility and persistence of the real exchange rate --- and yield plausible parameter estimates, this success is qualified by the model's inability to account for the transmission of foreign disturbances to the domestic economy: less than one percent of the variance of output is explained by foreign shocks" @default.
- W3147483703 created "2021-04-13" @default.
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- W3147483703 date "2006-01-01" @default.
- W3147483703 modified "2023-09-24" @default.
- W3147483703 title "Foreign shock transmission in small open economies" @default.
- W3147483703 hasPublicationYear "2006" @default.
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