Data on Investment Reported by Researchers at Federal Reserve Bank (Closing Small and “sufficiently” Large Open Economies With Different Asset Structures): Investment

2025 FEB 13 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Research findings on Investment are discussed in a new report. According to news reporting out of St. Louis, Missouri, by NewsRx editors, the research stated, “There are two important dimensions that matter when we write down a model economy of a country that is open to international financial markets. The first one is its size, and the second one is its asset market structure.”

Our news journalists obtained a quote from the research from Federal Reserve Bank, “Small open economies are price takers so the analysis happens in partial equilibrium, while countries that are ‘sufficiently’ large can affect international prices and the analysis happens in general equilibrium. The second important dimension is the asset market structure. If markets are complete there is full risk sharing, while if markets are incomplete there is not. In this paper I explore how these two dimensions-size and market structure-affect the conditions for the existence and the uniqueness of the equilibrium in economic models, and discuss how to achieve those conditions when they are not present.”

According to the news editors, the research concluded: “I finish by discussing how these implications change when a tax on the return to net foreign assets is introduced, generating endogenous incomplete markets.”

This research has been peer-reviewed.

For more information on this research see: Closing Small and “sufficiently” Large Open Economies With Different Asset Structures. Federal Reserve Bank of St Louis Review, 2024;106(13):1-8. Federal Reserve Bank of St Louis Review can be contacted at: Federal Reserve Bank St Louis, Box 442, St Louis, MO 63166, USA.

Our news journalists report that additional information may be obtained by contacting Paulina Restrepo-Echavarria, Federal Reserve Bank, St. Louis, MO 63102, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.20955/r.2024.13. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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