Global rebalancing with gravity
Subtitle: measuring the burden of adjustment
By: Robert Dekle, Jonathan Eaton, Samuel Kortum.
Contributors: Eaton, Jonathan.; Kortum, Samuel.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13846; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13846.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We use a forty-two country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDP's, real wages, and real absorption.  How much relative GDP's need to change depends on flexibility of two forms: factor mobility and the adjustment in sourcing of imports, with more flexibility requiring less change.  At the extreme, US GDP falls by 30 percent relative to the world's.  Because of the pervasiveness of nontraded goods, however, most domestic prices move in parallel with relative GDP, so that changes in real GDP are small"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/16/2008.

Includes bibliographical references.

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