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...

This paper estimates an empirical nonstationary panel regression model that tests long-run consumption risk sharing across a sample of OECD and emerging market (EM) countries. This is in contrast to the existing literature on consumption risk sharing, which is mainly about risks at business...

This paper examines how bilateral economic linkages shape consumption synchronization across economies. Using state-level data from the US, we find that the degree of bilateral consumption risk sharing decreases with geographic distance. To explain this novel fact, we develop an open economy...

This paper presents a cross-country horizon analysis of departures from full-information rational expectations (FIRE) among professional forecasters from 18 OECD countries. Using four well-known tests of FIRE, I find significant heterogeneity in the cross-section of results. My findings...

This paper examines the structure and direction of developing Asia’s tradeover the past two decades. The impacts of economic slowdown in highincomeOrganisation for Economic Co-operation and Development (OECD)countries on developing Asia in 2009-2010 are then projected through acomputable...

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...

We review recent work comparing properties of international business cycles with those of dynamic general equilibrium models, emphasizing two discrepancies between theory and data that we refer to as anomalies. The first is the consumption/output/productivity anomaly: in the data we generally...