; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Fiscal Policy, Productivity Shocks, and the U.S. Trade Balance Deficit"; ; "batchuser@example.com"; "Kollmann, Robert Miguel W. K., 1963-"; "Federal Reserve Bank of Minneapolis"; "E32 - Business Fluctuations; Cycles", "F32 - Current Account Adjustment; Short-term Capital Movements"; "A two-country Real Business Cycle (RBC) model is used to study the behavior of the United States trade balance. In this model, economic fluctuations are driven by productivity shocks and by variations in government purchases and in distorting taxes. The model is simulated using quarterly data on total factor productivity, government purchases, and the average tax rate in the seven major industrial countries during the period 1975–91. A version of the model that postulates complete international asset markets—as frequently assumed in the International RBC literature (see, e.g., Backus, Kehoe, and Kydland 1992)—fails to explain the observed behavior of the U.S. trade balance. In contrast, a version with incomplete asset markets, in which only debt contracts can be used for international capital flows, tracks the behavior of the U.S. trade balance fairly closely. "^^; "1995-02-01"; "2019-05-21T16:41:31.085840461+00:00"^^; "https://doi.org/10.21034/dp.98"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Apr 22 16:40:38 2020"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "413"; "Discussion paper (Federal Reserve Bank of Minneapolis. Institute for Empirical Macroeconomics)"; "098"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Institute for Empirical Macroeconomics"; "Published as \"US Trade Balance Dynamics: the Role of Fiscal Policy and Productivity Shocks and of Financial Market Linkages\" in: _Journal of International Money and Finance_ (Vol. 17, No. 4, August 1998, pp. 637-669) https://doi.org/10.1016/S0261-5606(98)00022-9."^^; ; "Publication" . ; .