RIEB Discussion Paper Series No.2014-21
Title
Welfare Benefits of Capital Controls:The Case of Spain
Abstract
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.
Keywords
Capital controls, Welfare, DSGE, Small open economy models, Bayesian estimation
JEL Classification
F41
Inquiries
Shigeto KITANO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059
Yoichi MATSUBAYASHI
Graduate School of Economics, Kobe University, Japan
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059
Yoichi MATSUBAYASHI
Graduate School of Economics, Kobe University, Japan