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Use for questions related to international trade, commercial policy, open economy macroeconomics, international finance, and exchange rates. It can also be used in financial and monetary policies, economic development, migration and factor movements, as long as they are specifically related to an international context. Preferably use in conjunction with other, more precise tag.

1
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If OA is a part of FA. The second equation follows from the first: $CA + KA = FA \wedge OA \neq 0 \Rightarrow FA - OA = CA +KA -OA \neq CA +KA$. Response to your EDIT: $CA + KA \neq \frac{FA}{OA}$ f …
answered Aug 3 '19 by Grada Gukovic
8
votes
I'd interact the regressor you are interested in with a dummy for the country being developed and see what happens. Its entirely possible that the mechanisms at play in developed contries are differen …
answered Jul 1 '21 by Grada Gukovic
3
votes
As we have discussed in the comments, the utility function used in the book is Cobb-Douglas: $U = CM^{\mu}A^{1 - \mu}$. The well known fact mentioned in equation (3.3) on page 57 - the one that you h …
answered Aug 30 '19 by Grada Gukovic