The paper develops a simple general equilibrium model of the current account net of factor services. The model takes explicitly into account the relation between the real exchange rate, the trade balance, output and expenditures. The model is then estimated for the Chilean economy using quarterly data. The model was then used to make some counterfactual simulations.
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DETAILS
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1985/11/01
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Departmental Working Paper
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DRD141
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1
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1
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2013/03/11
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Disclosed
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Explaining the trade balance : a general equilibrium approach
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Balance of trade
Citation
Caballero,Ricardo Jorge; Corbo,Vittorio.
Explaining the trade balance : a general equilibrium approach (English). Development Research Department discussion paper ; no. DRD 141 Washington, DC: World Bank. http://documents.worldbank.org/curated/en/254141468023423543