TY  - JOUR
AU  - Darby,Michael R.
AU  - Stockman,Alan C.
TI  - The Mark III International Transmission Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 462
PY  - 1980
Y2  - March 1980
UR  - http://www.nber.org/papers/w0462
L1  - http://www.nber.org/papers/w0462.pdf
N1  - Author contact info:
Michael R. Darby
John E. Anderson Graduate School of Management
University of California, Los Angeles
110 Westwood Plaza, Box 951481
Los Angeles, CA 90095-1481
Tel: 310/825-4180
Fax: 310/454-2748
E-Mail: michael.r.darby@anderson.ucla.edu

Alan C. Stockman
Department of Economics
University of Rochester
Rochester, NY  14627-0156
Tel: 585/275-7214
Fax: 585/256-2309
E-Mail: N/A user is deceased
M1  - published as Michael R. Darby, Alan C. Stockman. "The Mark III International Transmission Model: Specification ," in Michael R. Darby, James R. Lothian and Arthur E. Gandolfi, Anna J. Schwartz, Alan C. Stockman, "The International Transmission of Inflation" University of Chicago Press (1983)

AB  - This paper presents a summary and estimates of the Mark III International Transmission Model, a quarterly macroeconometric model of the United States, United Kingdom, Canada, France, Germany, Italy, Japan, and the Netherlands estimated for 1957 through 1976. The model is formulated to test and measure the empirical importance of alternative channels of international transmission including the effects of capital and trade flows on the money supply, of export shocks on aggregate demand, of currency substitution on money demand, and of variations in the real price of oil. Major Implications of the model estimates are:(1) Countries linked by pegged exchange rates appear to have much more national economic independence than generally supposed. (2) Substantial or complete sterilization of the effects of contemporaneous reserve flows on the money supply is a universal practice of the nonreserve central banks. (3) Quantities such as international trade flows and capital flows are not well explained by observed prices, exchange rates, and interest rates. (4) Explaining real income by innovations inaggregate demand variables works well for U.S. real income but does not transfer easily to other countries. The empirical results suggest a rich menu for further research.
ER  -