Kose, M. Ayhan; Otrok, Christopher; Prasad, Eswar - Institute for the Study of Labor (IZA) - 2008
global
t
2kj,i,
global
kj,i,
t
+++=
Then, the fraction of volatility due to, say, the global factor would be:
)var … structural decline in the volatility of business cycles in both
industrial and non-industrial countries.
10
III. Dynamic …), McConnell and Perez-Quiros (2000) and Stock and Watson (2005).
Explanations for this decline in volatility are many, ranging …