Gao, Xiaodan; Hnatkovska, Viktoria; Marmer, Vadim - In: Journal of Economic Dynamics and Control 39 (2014) C, pp. 255-272
In this paper, we argue that limited asset market participation (LAMP) plays an important role in explaining international business cycles. We show that when LAMP is introduced into an otherwise standard model of international business cycles, the performance of the model improves significantly,...