power and size. The analytical framework abstracts from distortions that arise from the means ofgovernment finance and …

having adjustment costs results into more volatile consumption and net exports, and less volatile investment. We document … three important facts on U.S. trade: a) the S-shaped cross-correlation function between real GDP and the real net exports … share, b) the J-curve between terms of trade and net exports, and c) the weak and S-shaped cross-correlation between real …

Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and … exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail … to replicate the behavior of imports and exports, though they can match net exports relatively well. Inspired by the fact …