Welfare Benefits of Capital Controls:The Case of Spain

We estimate a small open economy RBC model augmented with a simple form of financial frictions using Spanish data and Bayesian methods. The estimated model matches well with key Spanish business cycle statistics. Using the estimated model, we find that significant welfare benefits may accrue from capital controls.

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Year of publication:	2014-05
Authors:	Kitano, Shigeto ; Matsubayashi, Yoichi
Institutions:	Research Institute for Economics and Business Administration, Kobe University
Subject:	Capital controls \| Welfare \| DSGE \| Small open economy models \| Bayesian estimation

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Series:	Discussion Paper Series. - ISSN 1345-2207.
Type of publication:	Book / Working Paper
Notes:	Number DP2014-21 26 pages
Classification:	F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011227980