Maison de l'économie et de la gestion d'Aix
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Soubeyran
Publications
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A partial two country equilibrium model is built in which two different exogenous random shocks may occur. The governments simultaneously choose tariff functions relating their specific tariff to the level of an observable variable (volume of trade or international price). In the case of a "volume of trade shock," the Nash equilibria of this game are more protectionist the larger the possible trade swings and autarky is always an equilibrium outcome. In the case of a "terms of trade shock," constant tariffs, at their Nash equilibrium in specific tariff levels are the only sensible equilibrium outcome. Copyright 1993 by Blackwell Publishing Ltd.
[eng] Optimal adjustment policies of a small open indebted economy : an introduction. . Optimal control of economies with external debt above its long run target level is studied and time-inconsistent and time-consistent optimal policies are derived successively. Every optimal policy entails initially large values of the domestic interest rate. [fre] Optimal adjustment policies of a small open indebted economy : an introduction. . Optimal control of economies with external debt above its long run target level is studied and time-inconsistent and time-consistent optimal policies are derived successively. Every optimal policy entails initially large values of the domestic interest rate.