Endogenous income elasticities
This paper deepens the analysis of the income elasticities of import and export demand in relation to the real exchange rate (RER) within a balance of payments constrained growth framework. It identifies how the RER can affect these elasticities and explores the resulting implications. A key highli...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2025-04-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18918 |
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| _version_ | 1850171866607517696 |
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| author | Fabrizio J. Missio |
| author_facet | Fabrizio J. Missio |
| author_sort | Fabrizio J. Missio |
| collection | DOAJ |
| description |
This paper deepens the analysis of the income elasticities of import and export demand in relation to the real exchange rate (RER) within a balance of payments constrained growth framework. It identifies how the RER can affect these elasticities and explores the resulting implications. A key highlight is the RER’s ability to induce structural changes toward more complex and technology-intensive sectors. To illustrate this, a formal multisectoral model is presented, demonstrating the conditions under which a higher RER can alleviate external constraints. Finally, several related considerations are addressed.
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| format | Article |
| id | doaj-art-5f40882ef63d4929ae27c2fd80ea649f |
| institution | OA Journals |
| issn | 2037-3635 2037-3643 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj-art-5f40882ef63d4929ae27c2fd80ea649f2025-08-20T02:20:12ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432025-04-017831210.13133/2037-3643/18918Endogenous income elasticitiesFabrizio J. Missio0Federal University of Minas Gerais (CEDEPLAR/UFMG), Belo Horizonte This paper deepens the analysis of the income elasticities of import and export demand in relation to the real exchange rate (RER) within a balance of payments constrained growth framework. It identifies how the RER can affect these elasticities and explores the resulting implications. A key highlight is the RER’s ability to induce structural changes toward more complex and technology-intensive sectors. To illustrate this, a formal multisectoral model is presented, demonstrating the conditions under which a higher RER can alleviate external constraints. Finally, several related considerations are addressed. https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18918balance-of-payments constraintmulti-sectoral Thirlwall’s Lawincome elasticities |
| spellingShingle | Fabrizio J. Missio Endogenous income elasticities PSL Quarterly Review balance-of-payments constraint multi-sectoral Thirlwall’s Law income elasticities |
| title | Endogenous income elasticities |
| title_full | Endogenous income elasticities |
| title_fullStr | Endogenous income elasticities |
| title_full_unstemmed | Endogenous income elasticities |
| title_short | Endogenous income elasticities |
| title_sort | endogenous income elasticities |
| topic | balance-of-payments constraint multi-sectoral Thirlwall’s Law income elasticities |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/18918 |
| work_keys_str_mv | AT fabriziojmissio endogenousincomeelasticities |