We analyze the sources of current account fluctuations for the G6 economies. Based on Bergin and Sheffrin's (2000) two-goods inter-temporal framework, we build a SVAR model including the world real interest rate, net output, real exchange rate, and the current account. The theory model allows...

Do sector-specific factors common to all countries play an important role in explaining business cycle co-movement? We address this question by analyzing international co-movements of value added (VA) growth in a multi-sector dynamic factor model. The model contains a world factor,...

The extent to which push and pull factors affect international capital flows is widely debated. We contribute to this strand of literature by estimating the relative importance of push and pull factors for portfolio flows over a time span, encompassing the global financial crisis, the European...

People typically do not acquire new information about the facts of the economy through consulting official statistics; they read or listen to mediatype reports/stories on the economy where the facts are packaged in a story. This paper tests with an experiment whether the explanatory style used...

We analyze how trade affects aggregate volatility using a multi-country, multiindustry, and multi-destination framework. We decompose aggregate output growth risk into destination risk, origin risk, and idiosyncratic risk (and their covariances). We then use this framework to run counterfactuals...

We develop a model where temporary non-technology shocks can lead to permanent changes in the rate of growth of total factor productivity (TFP). The key ingredient of the model is a matching processes between basic researchers, product developers, and the stock of knowledge of the economy. In...

The aim of this paper is to estimate the sensitivity of the natural rate of growth to the actual rate of growth for 15 OECD countries over the period 1961 to 1995, on the hypothesis that the natural rate of growth is not exogenously given. To do this we estimate the natural rate of growth and,...

This paper presents an extended model of cumulative growth in which the effects of innovation and catching-up are considered. The effect of innovation adds another source of cumulative growth to that of the traditional models and allows for the consideration of the importance of non-price...

This paper presents an overview of the literature on 'cumulative growth'. It is argued that, independently of the 'new' growth theory, these models have achieved the nature of 'endogenous' growth models. Their main differences, however, lie in the assumptions about the equilibrium prevailing in...

This paper applies the panel unit root test proposed by Im, Pesaran and Shin (1997) to test for unemployment hysteresis in the US states and the EU countries against the alternative of a natural rate. The results show that hysteresis for the EU and the natural rate for the US states are the most...