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Variable Factor Utilization and International Business Cycles

Baxter, Marianne; Farr, Dorsey - 2021

When an economic boom produces high output, employment, and investment in the United States, there is usually a simultaneous boom in other industrialized countries. But, why? Answering this question is a central goal of international macroeconomics. However, multi-country dynamic equilibrium...

Persistent link: https://www.econbiz.de/10013224673

Leverage Constraints and the International Transmission of Shocks

Devereux, Michael B. - 2010

Recent macroeconomic experience has drawn attention to the importance of interdependence among countries through financial markets and institutions, independently of traditional trade linkages. This paper develops a model of the international transmission of shocks due to interdependent...

Persistent link: https://www.econbiz.de/10013139756

Trade Linkages and Output-Multiplier Effects : A Structural VAR Approach with a Focus on Asia

Abeysinghe, Tilak; Forbes, Kristin - 2022

This paper develops a structural VAR model to measure how a shock to one country can affect the GDP of other countries …. It uses trade linkages to estimate the multiplier effects of a shock as it is transmitted through other countries' output …-trade matrix. For example, due to these output-multiplier effects, a shock to one country can have a large impact on countries that …

Persistent link: https://www.econbiz.de/10013292459

Networks and the Macroeconomy : An Empirical Exploration

Acemoglu, Daron - 2015

the direct impact of a shock and the magnitudes of the downstream and the upstream indirect effects. We then investigate … through the input-output network, with a pattern broadly consistent with theory. Quantitatively, the network-based propagation …, capturing the fact that the local propagation of a shock to an industry will fall more heavily on other industries that tend to …

Persistent link: https://www.econbiz.de/10013019498

Comovement in GDP Trends and Cycles Among Trading Partners

Blonigen, Bruce A. - 2012

It has long been recognized that business cycle comovement is greater between countries that trade intensively with one another. Surprisingly, no one has previously examined the relationship between trade intensity and comovement of shocks to the trend level of output. Contrary to the result for...

Persistent link: https://www.econbiz.de/10013106491

Exchange Rate Flexibility and the Transmission of Business Cycles

Macedo, Jorge Braga de; Meerschwam, David M. - 2021

This paper presents a very simple model of the effects of flexible exchange rates in the transmission of business cycles. The starting point is the traditional "locomotive" effect, through exports and imports. Aside from this horizontal transmission, the intertemporal exchange rate model...

Persistent link: https://www.econbiz.de/10013232459

Business Cycles and the Asset Structure of Foreign Trade

Baxter, Marianne - 2010

International financial market linkages are widely believed to be important for the international transmission of business cycles, since these govern the extent to which individuals can smooth consumption in the presence of country-specific shocks to income. This paper develops a two-country,...

Persistent link: https://www.econbiz.de/10012763571

Microeconomic Uncertainty, International Trade, and Aggregate Fluctuations

Alessandria, George - 2014

The extent and direction of causation between micro volatility and business cycles are debated. We examine, empirically and theoretically, the source and effects of fluctuations in the dispersion of producer- level sales and production over the business cycle. On the theoretical side, we study...

Persistent link: https://www.econbiz.de/10013044984

Capital Mobility and International Sharing of Cyclical Risk

Bengui, Julien - 2012

This paper investigates whether the international globalization of financial markets allows for significant cross-country risk-sharing at the business cycle frequency. We find that cross-country risk-sharing is still limited and this is unlikely to be the result of financial frictions that limit...

Persistent link: https://www.econbiz.de/10013100978

Product Prices and the OECD Cycle

Kraay, Aart; Ventura, Jaume - 2021

It is well known that business cycles in OECD countries exhibit a remarkable degree of synchronization. Much less known is that the peak of the OECD cycle is associated with high prices of labour-intensive products and low prices of capital-intensive ones. We document this cyclical behavior of...

Persistent link: https://www.econbiz.de/10013233430