Pentecôte, Jean-Sébastien; Poutineau, Jean-Christophe; … - In: Revue économique 63 (2012) 3, pp. 523-533
This paper shows that an increase in trade integration has mixed effects on business cycle synchronization. In a two country dsge model with flexible prices we show that an increase in the extensive margin of trade reduces the coupling of business cycles with regard to a trade increase affecting...