Dynamic Equilibrium and the Real Exchange Rate in a Spatially Separated World
研究两个国家间实物资本在转移成本下的动态均衡，发现资本失衡持续存在，相对价格具有非线性均值回归特征，但偏离平价的可能性大于趋近平价，实际利差包含简单风险溢价。
Two homogeneous stocks of physical capital are located in two different countries, separated by an “ocean.” They are consumed by local residents, invested in a random production process yielding real returns, or transferred abroad. Under proportional transfer costs, trade, consumption, and capital imbalances are shown to be persistent. The heteroskedastic process for the relative price of capital in the two countries has a nonlinear, mean-reverting drift. Nevertheless, the conditional probability of the price moving from the parity value of unity is greater than the probability of it moving toward parity. The real interest-rate differential incorporates a simple risk premium.