Investment Shocks: A Source of Fluctuations in a Small Open Economy
This paper contributes to the existing Real Business Cycle (RBC) literature by introducing Marginal Efficiency of Investment (MEI) shocks into small open economic model. Investment shocks are the most important drivers of business cycle fluctuations in small open economy because the fluctuations in...
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| Format: | Article |
| Language: | English |
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University of Ljubljana
2013-09-01
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| Series: | Economic and Business Review |
| Online Access: | http://www.ebrjournal.net/ojs/index.php/ebr/article/view/220/pdf |