The Costs Of Emerging Market Financial Crises: Output, Productivity And Welfare

Financial crises in emerging market countries appear to be very costly: output falls are often dramatic, while a host of partial welfare indicators - from suicide rates to infant mortality - deteriorate as well. The magnitude of these costs is puzzling both from an accounting perspective - factor usage does not decline as much as output, resulting in large falls in measured productivity - and from a theoretical perspective - the authors have no theory as to why technology should deteriorate during a crisis, and these economies are usually too closed to international trade for terms of trade changes to have a large effect on welfare.

Provided by: TechRepublic Topic: CXO Date Added: Feb 2010 Format: PDF

Find By Topic