transitory components of TFP shocks and learn about those components using the Kalman filter. Calibrated to Mexico, the model …, our estimation for Mexico and Canada suggests more severe informational frictions in emerging markets than in developed …

, employment and GDP in both the US and Mexico. For the subsample preceding the break our findings are similar to those of earlier … parameters being higher than 1 in the case of Mexico …

We use the regime-switching econometric models in Hamilton (1989) and Filardo (1994) to study business cycles in Mexico …. In particular, we characterize the ups and downs of economic activity in Mexico. As a proxy for economic activity, we use … sector indicators. Our results show that recessions in Mexico are deeper and shorter than expansions …

"permanent-like" effects in response to transitory shocks. The imperfect information model calibrated to Mexico predicts a higher …