Template-Type: ReDIF-Article 1.0
Author-Name: Diego Cerdeiro 
Author-Workplace-Name: Universidad de Buenos Aires - Universidad de San Andrés 
Author-Name: Ariel Wirkierman
Author-Workplace-Name: Universidad de Buenos Aires - Universidad Nacional de La Plata
Title: International trade transmission channel of a local crisis: a simple model
Abstract: We propose a linear general interdependence model of the world economy, and use United Nations Statistics Division data to estimate its parameters. This allows us to assess the propagation through the channel of international trade of an exogenous shock to one country's autonomous expenditures, thereby constructing a "vulnerability ranking" for the countries in the sample to an exogenous shock to any of them. The response of the system to a negative shock to the United States autonomous outlays is carried out as an example. Though subject to multiple caveats, these comparative statics results might be useful for policy analysis.
Classification-JEL: F10, F15, F41, F42
Keywords: World trade multiplier, Linear general interdependence models, Input-Output analysis, Decoupling
Journal: Económica
Pages: 87-119
Volume: LIV
Issue: 1-2
Year: 2008
Month: January-December
File-URL: https://revistas.unlp.edu.ar/Economica/article/view/5491/4497
File-Format: Application/pdf
Handle: RePEc:akh:journl:561