Partial dollarization and financial frictions in emerging economies
Why this work is in the frame
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
Bibliographic record
Abstract
Abstract How do financial frictions affect macroeconomic volatility and monetary policy in emerging market economies? This article assesses the empirical relevance of such frictions by estimating a two‐bloc emerging market/rest‐of‐the‐world model containing two key features of emerging economies: partial transaction and liability dollarization, and financial frictions where capital financing is partially or totally in foreign currency. Our estimation employs the “one‐step approach” which allows us to be “agnostic” regarding nonstationarity in the data and simultaneously estimate structural and trend parameters. Using data for Peru and the US, we find substantial empirical support for both the financial accelerator and partial dollarization mechanisms. The data fit of the baseline model improves with the addition of each of these frictions, exogenous shocks are significantly amplified in their presence and our preferred model captures several important stylized facts of a small emerging open economy.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.000 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.001 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it