Two essays on international business cycles / (1997)
Thesis (Ph. D.)--Yale University, 1997.
Welfare Effects of Tax Policy in Open Economies: Stabilization and Cooperation
Sunghyun Henry Kim, Jinill Kim
This paper studies optimal tax policy problem by employing a two-country dynamic general equilibrium model with incomplete asset markets. We investigate the possibility of welfare-improving active,...
Dynamics of Open-Economy Business-Cycle Models: Role of the Discount Factor.
Kim, Sunghyun Henry, Kose, M Ayhan
This paper examines the dynamic implications of different preference formulations in open-economy business-cycle models with incomplete asset markets. In particular, we study two preference...
Welfare effects of tax policy in open economies: stabilization and cooperation
Jinill Kim, Sunghyun Henry Kim
This paper studies an international tax policy design problem by employing a two-country dynamic general equilibrium model with incomplete asset markets. We investigate the possibility of welfare...
Welfare Effects of Tax Policy in Open Economies: Stabilization and Cooperation
Sunghyun Henry Kim, Jinill Kim
This paper studies optimal tax policy problem by employing an open economy dynamic general equilibrium model with incomplete asset markets. We investigate the possibility of welfare-improving active...
Two Pitfalls of Linearization Methods
JINILL KIM, SUNGHYUN HENRY KIM
This paper illustrates two types of pitfalls when linearization methods are improperly applied. First, if we linearize the constraints before deriving the optimality conditions, the derived...
Integration and Fluctuations : The Case of MENA
HIDEAKI HIRATA, SUNGHYUN HENRY KIM, M. AYHAN KOSE
This paper analyzes the impact of global integration on the dynamics of economic growth and business cycles in the emerging economies of Middle East and North Africa (MENA) and Asia. In particular,...
Jinill Kim, Sunghyun Henry Kim
This paper investigates the accuracy of the log-linear approximation method in welfare calculations, especially in measuring welfare gains of international risk sharing. We derive closed-form...
Inaccuracy of Loglinearization in Welfare Calculations: Complete vs. Incomplete Market Economies
Jinill Kim, Sunghyun Henry Kim, Andrew Levin
Most general equilibrium models calculate welfare gains from international risk sharing based on a loglinear approximation. They have reported welfare gains ranging from zero to one percent of...
Dynamics of Open Economy Models: What Is the Role of the Discount Factor?
Sunghyun Henry Kim, M. Ayhan Kose
This paper examines the dynamic implications of the use of an endogenous discount factor in small open economy models. We first present a stochastic dynamic model of a small open economy with an...
Welfare Effects of Tax Policy in Open Economies: Stabilization and Cooperation
Sunghyun Henry Kim, Jinill Kim
welfare, tax policy, second-order approximation, cooperative equilibrium, Nash equilibrium
Macroeconomic Effects of Capital Account Liberalization: the Case of Korea
Soyoung Kim, Sunghyun Henry Kim, Yunjong Wang
The macroeconomic effects of capital account liberalization in Korea are examined. Simple data analysis suggests that capital account liberalization substantially changed the nature and composition...
Dynamics of Business Cycles in Asia: Differences and Similarities
Sunghyun Henry Kim, M. Ayhan Kose, Michael G. Plummer
The paper documents the extent of similarities and differences of business cycle characteristics of the Asian countries and compares the cyclical regularities in this region with those of the G-7...
Two pitfalls of linearization methods
Jinill Kim, Sunghyun Henry Kim
This paper illustrates two types of pitfalls in using linearization methods. First, if constraints are linearized before deriving optimality conditions, the derived conditions are not correct up to...
Sources of Fluctuations: The Case of MENA
Hideaki Hirata, Sunghyun Henry Kim, M. Ayhan Kose
We analyze the sources of macroeconomic fluctuations in the emerging countries in the Middle East and North Africa (MENA) region using a dynamic stochastic general equilibrium model. The model...
Patience, Persistence and Properties of Two-Country Incomplete Market Models
Jinill Kim, Sunghyun Henry Kim, Andrew Levin
No abstract.
Patience, persistence and welfare costs of incomplete markets in open economies
Jinill Kim, Sunghyun Henry Kim, Andrew Levin
In this paper, we investigate the welfare implications of alternative financial market structures in a two-country endowment economy model. In particular, we obtain an analytic expression for the...
Financial Panic and Exchange Rate Overshooting during Currency Crises
Soyoung Kim, Sunghyun Henry Kim
During currency crises, some currencies depreciate more than the post-crisis exchange rate level, which can be described as exchange rate overshooting. Previous studies have claimed that a tight...
Spurious Welfare Reversals in International Business Cycle Models
Jinill Kim, Sunghyun Henry Kim
Several papers on international business cycles have documented spurious welfare reversals, in that incomplete market economies can produce higher welfare than the complete market economy. This paper...