We present a unified dynamic framework to study the interconnections between international trade and business cycle … externalities and dynamic trade models that feature monopolistic competition, endogenous entry, and heterogeneous firms. The … that the model is isomorphic to dynamic trade models that embody love-of-variety and selection effects. In a quantitative …

large parts of the world. In this paper we explore the financial and the trade channel in a unified framework and quantify … losses in the value of cross-border asset holdings. Calibrated to German data, the model predicts the trade channel to be …. The transmission via the financial channel triggers a much longer-lasting recession relative to the trade channel …

factors from trade-related spillovers, and identify the Covid-19 shock using GDP growth forecast revisions of the IMF in 2020Q …

-spending shocks. Yet, since this trade-off between allocative efficiency and consumption risk sharing does not exist after certain …

We present a unified dynamic framework to study the interconnections between international trade and business cycle … externalities and dynamic trade models that feature monopolistic competition, endogenous entry, and heterogeneous firms. The … that the model is isomorphic to dynamic trade models that embody love-of-variety and selection effects. In a quantitative …

negative, but they are also influenced most by the global financial crisis. Finally, we find a significant link between trade … ; business cycles ; decoupling ; trade ; dynamic correlation …

provide our own estimates for the EU countries. A fiscal expansion raises output and consumption and reduces the trade balance …. Moreover, the stimulating effect of higher government purchases is weaker and the trade balance reduction is larger for more …