期刊名称：Euro Area Balance of Payments and International Investment Position Statistics
印刷版ISSN：1830-3420
电子版ISSN：1830-3439
出版年度：2014
出版社：European Central Bank
摘要：This paper proposes a methodology for tracing out the e¤ect of intermediate inputs, includ-ing processing trade, on the link between external rebalancing and relative price adjustment.We nd that neglect of inputs distorts parameterization of the traditional multi-sector macromodel. Distortions a¤ect the link between external rebalancing and relative price through sev-eral opposing channels. (1) Mismeasured imported inputs exaggerate economic openness andunderstate the price response to rebalancing. (2) Mismeasured domestic inputs increase cross-sectoral asymmetry in openness, leading to an overstated price response. (3) Mismeasured priceelasticities tend to overstate the price response. (4) Distortions in model parameters interact togenerate a sizable further understatement of the price response. Quantitative results show thatthe identi ed channels can each be signi cant in economic terms.
