| Title |
Contagion and gravity : how contagion theory can be used to improve the gravity model for international capital flows
|
| Author |
Baer, Dillon
|
| Department |
Department of Economics and Business
|
| Institution |
Colorado College
|
| Degree Type |
bachelor
|
| Degree Name |
Bachelor of Arts
|
| Type of Resource |
text
|
| Digital Origin |
reformatted digital
|
| Date Accepted |
2009
|
| Date Digitized |
2009
|
| Abstract |
The gravity equation is one of the most empirically successful tools to model international capital flows. However, technological developments and globalization have brought into question the significance of the distance aspect of the model. Contagion theory offers an avenue for developing the gravity equation and capturing some of the lost effect of distance. Therefore, this study will show that contagion theory is an effective instrument to improve the gravity model. To do this, the study will utilize international capital flows between the United States and various emerging markets from Latin America and Asia. This study will also employ principle component analysis and a random effect model for regression analysis. The results suggest that contagion theory provides a valuable improvement over the existing gravity equation.
|
| Keywords |
Gravity
Contagion theory
Capital flows
|
| Rights Statement |
Copyright restrictions apply. Contact the author for permission to publish.
|
| Extent |
vii, 54 p. : ill. ; 29 cm.
|
| Note (thesis) |
Senior Thesis -- Colorado College
|
| Note (bibliography) |
Bibliography : p. 53-54
|
| Language |
eng
|
| OCLC Identifier |
429253316
|
| Handle |
http://hdl.handle.net/10176/coccc:1322
|
