Work

The Risky Steady State

Year: 2011

Type: article

Abstract: We propose a simple quantitative method to linearize around the risky steady state of a small open economy. Unlike when the deterministic steady state is used, the net foreign asset position is well defined. We allow for stochastic income and stochastic interest rate.

Source: American Economic Review

DOI: 10.1257/aer.101.3.398

Authors: Nicolas Coeurdacier, Hélène Rey, Pablo Winant

Institutions: Institut d'Etudes Politiques de Paris, Département d'économie de Sciences Po, London Business School, National Bureau of Economic Research, Centre for Economic Policy Research, Bank of England, Paris School of Economics

Language: English

Topic: Economic theories and models

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2056834170

FWCI: 16.24

Cites: 7

Cited by: 145

Related to: 10