Chudik, Alexander; Straub, Roland - 2010
endogenous macroeconomic variables, is a prevailing issue in the open economy macro literature. The most common practise to … mitigate this problem is to apply the so-called Small Open Economy Framework (SOEF). In this paper, we aim to review under … (ii) there is no globally dominant economy in the system. Third, we illustrate that macroeconomic interdependence is …