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실질이자율충격의 도입을 통한 소규모개방경제 변동성 분석

Small Open Economy with real interest shock over the Korean business cycle

초록/요약

The prototype real business cycle model is generally known that it explains about 70% of U.S.A’s economic volatility. But the model has some limits to adopt for other economies because of the model’s excessively simplicity. Meanwhile, many studies are introduced to overcome the limitation of explanatory power. One of the tries is adding foreign shock especially for dependent nation to global factors like Korea. In this paper, international real interest shock is added to overcome the limits. In addition, time-varying preference discount factor and capital adjustment cost function are also considered for a stable steady state of the model. With calibrated parameter in the model that mimics Korean economy, the simulation results show that this model explains the stylized facts of Korean business cycle. International real interest shock decreases all variables temporarily.

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